On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,390,000. During 2021, costs of $2,130,000 were incurred with estimated costs of $4,130,000 yet to be incurred. Billings of $2,630,000 were sent, and cash collected was $2,380,000. In 2022, costs incurred were $2,630,000 with remaining costs estimated to be $3,795,000. 2022 billings were $2,880,000 and $2,605,000 cash was collected. The project was completed in 2023 after additional costs of $3,930,000 were incurred. The company's fiscal year-end is December 31. Arrow recognizes revenue r 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 2021, 2022, and 2023 using the percentage of completion method. - % complete to date 2021 = - 34,0256% 55.6400% 2022 2023 $ Percentages of completion Choose numerator Choose denominator Actual costs to date Estimated total costs 2,130,000 + FI 6,260,000 4,760,000 + 8,555,000 8,690,000 FI 8,690,000 2021 To date Recognized in prior years 2,854,744 2,130,000 $ 724,744S 100.0000% $ Construction revenue Construction expense Gross profit (loss) Recognized in 2021 2,854,744 2,130,000 724,744 Construction revenue Construction expense Gross profit (loss) To date 4,668,194 4,760,000 (91,806) 2022 Recognized in prior years 2,854.744 $ 2,130,000 $ 724.744 Recognized in 2022 1.813.450 2,630,000 (816.550) $ $ 2023 To date Construction revenue Construction expense Gross profit loss) 8,390,000S 8690,000 (300,000) $ S $ Recognized in prior years 4,668,194 4.760,000 91,806 S Recognized in 2023 3,721,806 3,930.000 (391,806)