On July 1, 2020, Pina Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,900,000. 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

(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

(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.)

On July 1, 2020, Pina Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,900,000. 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 $300,000 1,200,000 300,000 At 12/31/21 $1,154,200 835,800 1,120,000 At 12/31/22 $2,088,700 -0- 1,840,000 (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.) (If answer is 0, 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 e.g. -45 or parenthesis e.g. (45).) 2020 TCosts to date (12/31/20) 300000 TEstimated Costs to Complete 1200000 T Estimated Total Costs 1500000 T Percent Complete 201% TRevenue Recognized 380000 TCosts Incurred -300000 Gross Profit / (Loss) Recognized in 2020 80000 2021 TCosts to date (12/31/21) 1154200 TEstimated Costs to Complete 835800 T Estimated Total Costs 1990000 T Contract Price 1900000 TTotal Profit/Loss TTotal Profit/Loss TGross Profit Recognized in 2020 80000 T Profit/ (Loss) Recognized in 2021 2022 Costs to date (12/31/22) 2088700 TEstimated Costs to Complete T Contract Price TTotal Profit/Loss TTotal Profit/Loss -188700 Profit/ (Loss) Recognized in 2021 oy TGross Profit / (Loss) Recognized in 2020 T Profit/ (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.) (If answer is 0, please enter 0. Do not leave any fields blank. If an amount should be deducted then enter the amount using either a negative sign prececeding the number e.g. -45 or parenthesis e.g. (45).) 2021 Estimated Total Costs Contract Price 1900000 T Profit/ (Loss) Recognized in 2021 2022 TCosts Incurred T Contract Price 1900000 TTotal Profit / (Loss) on Contract Profit / (Loss) Recognized in 2021 Profit/ (Loss) Recognized in 2022