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On June 1 5 , 2 0 2 1 , Sanderson Construction entered into a long - term construction contract to bulld a baseball stadium
On June Sanderson Construction entered into a longterm construction contract to bulld a baseball stadium In
Washington, DC for $ million. The expected completion date is April just in time for the baseball season.
Costs Incurred and estimated costs to complete at yearend for the life of the contract are as follows $ in millions:
Required:
Compute the revenue and gross profit will Sanderson report In its and income statements related to
this contract assuming Sanderson recognizes revenue over time according to percentage of completion.
Compute the revenue and gross profit will Sanderson report in its and income statements related to
this contract assuming this project does not qualify for revenue recognition over time.
Suppose the estimated costs to complete at the end of are $ million Instead of $ million. Compute the
amount of revenue and gross profit or loss to be recognized in assuming Sanderson recognizes revenue over time
according to percentage of completion.
Complete this question by entering your answers in the tabs below.
Compute the revenue and gross profit will Sanderson report in its and income statements related to this contra
assuming Sanderson recognizes revenue over time according to percentage of completion. Enter your answer in millions ie $
should be entered as $ Loss amounts should be indicated with a minus sign. Use percentages as calculated and rounded in the
below to arrive at your final answer.
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