On February 1, 2016, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,510,000. During 2016, costs of $2,170,000 were incurred with estimated costs of $4,170,000 yet to be incurred. Billings of $2,670,000 were sent and cash collected was $2,420,000.

In 2017, costs incurred were $2,670,000 with remaining costs estimated to be $3,855,000. 2017 billings were $2,920,000 and $2,645,000 cash was collected. The project was completed in 2018 after additional costs of $3,970,000 were incurred. The companys fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion.

Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2016, 2017, and 2018 using the percentage-of-completion method? 2016 2017 2018 Estimated total gross profit (loss) 2,170,000 Actual total gross profit (loss) Percentages of completion E complete to date Choose numerator Choose denominator 0 2016 E 2017 2018 100.0000%