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On July 1, 2020, Pina Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,880,000. On

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On July 1, 2020, Pina Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,880,000. On July 1, Pina estimated that it would take between 2 and 3 years to complete the building. On December 31, 2022. the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Gumbel for 2020, 2021, and 2022. Contract costs incurred to date Estimated costs to complete the contract Billings to Gumbel At 12/31/20 $298,000 1,192,000 300,000 At 12/31/21 $1.194.000 796,000 1,100,000 At 12/31/22 $2.098,500 -0- 1,820,000 (a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2020, 2021, and 2022. (Ignore income taxes.) (lf answer is please enter 0. Do not leave any field blank. If an amount should be deducted then enter the amount using either a negative sign prececeding the number eg.-45 or parenthesis eg. (451) 2020 Costs to date (12/31/201 $ 298.000 Estimated Costs to Complete 1.192.000 Estimated Total Costs $ 1490,000 Percent Complete 20 56 Revenue Recognized 376.000 Costs incurred -298.000 Profit/(Loss) Recomized in 2020 $ 78.000 Question 6 of 6 2021 Costs to date (12/31/21 1,194,000 796,000 Estimated Costs to Complete Estimated Total Costs 1,990,000 Contract Price -1880000 Total Prot/Loss 90,000 Total Prot/Loss $ O Probt/(Loss) Recognized in 2021 78,000 Proh/(Loss) Recognized in 2021 2022 Costs to date (12/31/22) Estimated Costs to Complete Contract Price Total Pront/Loss Total Proht/Loss Profit/(Loss) Recognized in 2020 Profit/(Loss) Recognized in 2021 E Proft/(Loss) Recognized in 2022 (b) Using the completed-contract method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2020, 2021, and 2022. (Ignore income taxes.) (lf answer is 0, please enter O. Do not leave any fields blank. If an amount should be deducted then enter the amount using either a negative sign prececeding the number eg.-45 or parenthesis eg. (45)) 2021 2022

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