On July 1, 2020, Vaughn Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,890,000. On July 1, Vaughn 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 $312,900 1,177,100 300,000 At 12/31/21 $1,148,400 831,600 1,090,000 At 12/31/22 $2,076,000 -0- 1,850,000 (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 O. 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 Costs to date (12/31/20) 312,900 Estimated Costs to Complete 1,177,100 Estimated Total Costs 1,490,000 Percent Complete 21 Revenue Recognized 396,900 Costs Incurred -312,900 Profit/ (Loss) Recognized in 2020 84,000 2021 Costs to date (12/31/21) Estimated Costs to Complete Estimated Total Costs Contract Price | Total Profit/Loss Total Profit/Loss Total Profit/Loss Gross Profit Recognized in 2020 Profit/ (Loss) Recognized in 2021 ) 2022 Costs to date (12/31/22) 2,076,000 Estimated Costs to Complete 2,076,000 x x X (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 o, 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 Costs to date (12/31/21) 0 Estimated Costs to Complete 0 X (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 o, 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 e.g. -45 or parenthesis e.g. (45).) 2021 Costs to date (12/31/21) 0 Estimated Costs to Complete 0 Estimated Total Costs 0 2022 Profit/ (Loss) Recognized in 2022 1,890,000 X Profit/ (Loss) Recognized in 2021 0 Total Profit/ (Loss) on Contract 1,890,000 Costs Incurred 2,076,000 Profit/ (Loss) Recognized in 2022 -186,000 SHOW LIST OF ACCOUNTS LINK TO TEXT Question Attempts: 1 of 5 used SAVE FOR LATER SUBMIT ANSWER On July 1, 2020, Vaughn Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,890,000. On July 1, Vaughn 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 $312,900 1,177,100 300,000 At 12/31/21 $1,148,400 831,600 1,090,000 At 12/31/22 $2,076,000 -0- 1,850,000 (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 O. 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 Costs to date (12/31/20) 312,900 Estimated Costs to Complete 1,177,100 Estimated Total Costs 1,490,000 Percent Complete 21 Revenue Recognized 396,900 Costs Incurred -312,900 Profit/ (Loss) Recognized in 2020 84,000 2021 Costs to date (12/31/21) Estimated Costs to Complete Estimated Total Costs Contract Price | Total Profit/Loss Total Profit/Loss Total Profit/Loss Gross Profit Recognized in 2020 Profit/ (Loss) Recognized in 2021 ) 2022 Costs to date (12/31/22) 2,076,000 Estimated Costs to Complete 2,076,000 x x X (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 o, 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 Costs to date (12/31/21) 0 Estimated Costs to Complete 0 X (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 o, 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 e.g. -45 or parenthesis e.g. (45).) 2021 Costs to date (12/31/21) 0 Estimated Costs to Complete 0 Estimated Total Costs 0 2022 Profit/ (Loss) Recognized in 2022 1,890,000 X Profit/ (Loss) Recognized in 2021 0 Total Profit/ (Loss) on Contract 1,890,000 Costs Incurred 2,076,000 Profit/ (Loss) Recognized in 2022 -186,000 SHOW LIST OF ACCOUNTS LINK TO TEXT Question Attempts: 1 of 5 used