On February 1, 2016, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,375,000. During 2016, costs of $2,150,000 were incurred, with estimated costs of $4,150,000 yet to be incurred. Billings of $2,680,000 were sent and cash collected was $2,400,000.

In 2017, costs incurred were $2,680,000 with remaining costs estimated to be $3,825,000. 2017 billings were $2,930,000, and $2,625,000 cash was collected. The project was completed in 2018 after additional costs of $3,950,000 were incurred. The companys fiscal year-end is December 31. This project does not qualify for revenue recognition over time.

Required:

1.

Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years.

Year	Revenue recognized	Gross profit (loss) recognized
2016	$0	$0
2017	0	??????????????
2018	8,375,000	???????????????
Total	$8,375,000	$0

2017 is not 0 and 2018 is not -405000

3-a.

Prepare a partial balance sheet to show the presentation of the project as of December 31, 2016. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)

Current Assets
Accounts Receivable	280000
Current Liabilities
Billins in Excess of Costs	???????

3-b.	Prepare a partial balance sheet to show the presentation of the project as of December 31, 2017. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)

Current Assests
Accounts Receivable	585000
Current Liabilities
Billings in Excess of Costs Less Loss	???????

HI I just need the answers to where the questions marks are with an explanation if possible Thanks!