On June $15,2024,$ Sanderson Construction entered into a long$-$term construction contract to build a baseball stadium in Washington, D$.$C$.,$ for $\backslash (\backslash$$ $390\backslash )$ million. The expected completion date is April $1,2026,$ just in time for the $2026$ baseball season. Costs incurred and estimated costs to complete at year$-$end for the life of the contract are as follows $(\backslash$$ in millions$)$:

$1.$ Compute the revenue and gross profit that Sanderson will report in its $2024,2025,$ and $2026$ income statements related to this contract, assuming Sanderson recognizes revenue over time according to percentage of completion.

$2.$ Compute the revenue and gross profit that Sanderson will report in its $2024,2025,$ and $2026$ income statements related to this contract, assuming this project does not qualify for revenue recognition over time.

$3.$ Suppose the estimated costs to complete at the end of $2025$ are $\backslash (\backslash$$ $190\backslash )$ million instead of $\backslash (\backslash$$ $60\backslash )$ million. Compute the amount of revenue and gross profit or loss to be recognized in $2025,$ assuming Sanderson recognizes revenue over time according to percentage of completion.

Compute the revenue and gross profit that Sanderson will report in its $2024,2025,$ and $2026$ income statements related to this contract, assuming this project does not qualify for revenue recognition over time.

Note: Enter your answer in millions $($i$.$e$.,\backslash (\backslash$$ $4,000,000\backslash )$ should be entered as $\backslash (\backslash$$ $4\backslash )).$ Loss amounts should be indicated with a minus sign. Leave no cells blank. Complete this question by entering your answers in the tabs below.

Suppose the estimated costs to complete at the end of $2025$ are $\backslash (\backslash$$ $190\backslash )$ million instead of $\backslash (\backslash$$ $60\backslash )$ million. Compute the amount of revenue and gross profit or loss to be recognized in $2025,$ assuming Sanderson recognizes revenue over time according to percentage of completion.

Note: Enter your answer in millions $($i$.$e$.,\backslash (\backslash$$ $4,000,000\backslash )$ should be entered as $\backslash (\backslash$$ $4\backslash )).$ Use percentages as calculated and rounded in the table below to arrive at your final answer. Loss amounts should be indicated with a minus sign.

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Complete this question by entering your answers in the tabs below.

Required $1$

Compute the revenue and gross profit that Sanderson will report in its $2024,2025,$ and $2026$ income statements related to this contract, assuming Sanderson recognizes revenue over time according to percentage of completion.

Note: Enter your answer in millions $($i$.$e$.,\backslash$$$4,000,000$ should be entered as $\backslash (\backslash$$ $4\backslash )).$ Loss amounts should be indicated with a minus sign. Use percentages as calculated and rounded in the table below to arrive at your final answer.

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$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{8\}\{|$c$|\}\{$Percentages of completion$\}\backslash \backslash$

$\backslash$hline $2024$ & $\backslash$$ & $\backslash (60>\backslash )$ & $\backslash (\backslash$div $\backslash )$ & $\backslash$$ & $250$ & $\backslash (=\backslash )$ & $\backslash (24\mathrm{.}00\backslash \%\backslash )\backslash \backslash$

$\backslash$hline $2025$ & $\backslash$$ & $190$ & $\backslash (\backslash$div $\backslash )$ & $\backslash$$ & $250$ & $\backslash (=\backslash )$ & $76\mathrm{.}00\backslash \%\backslash \backslash$

$\backslash$hline $2026$ & $\backslash$$ & $\backslash (250\backslash$times $\backslash )$ & $\backslash (\backslash$div $\backslash )$ & $\backslash$$ & $\backslash (250\backslash$times $\backslash )$ & $\backslash (=\backslash )$ & $\backslash (100\mathrm{.}00\backslash \%\backslash )\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{8\}\{|$c$|\}\{2024\}\backslash \backslash$

$\backslash$hline & & & $\backslash$multicolumn$\{3\}\{|$c$|\}\{$Recognized in prior years$\}$ & $\backslash$multicolumn$\{2\}\{|$r$|\}\{$Recognized in $2024\}\backslash \backslash$

$\backslash$hline Construction revenue & $\backslash$$ & $\backslash (94>\backslash )$ & $\backslash$$ & & $\backslash (0\backslash$odot $\backslash )$ & $\backslash$$ & $94\backslash \backslash$

$\backslash$hline Construction expense & $\backslash$$ & $60$ & $\backslash$$ & & $\backslash (0\backslash$odot $\backslash )$ & $\backslash$$ & $60\backslash \backslash$

$\backslash$hline Gross profit $($loss$)$ & $\backslash$$ & $\backslash (34\backslash$times $\backslash )$ & $\backslash$$ & & $\backslash (0\backslash$times $\backslash )$ & $\backslash$$ & $34\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{8\}\{|$c$|\}\{2025\}\backslash \backslash$

$\backslash$hline & & & $\backslash$multicolumn$\{3\}\{|$c$|\}\{$Recognized in prior years$\}$ & $\backslash$multicolumn$\{2\}\{|$r$|\}\{$Recognized in $2025\}\backslash \backslash$

$\backslash$hline Construction revenue & $\backslash$$ & $296$ & $\backslash$$ & & $\backslash (94>\backslash )$ & $\backslash$$ & $202\backslash \backslash$

$\backslash$hline Construction expense & $\backslash$$ & $190$ & $\backslash$$ & & $\backslash (60\backslash$times $\backslash )$ & $\backslash$$ & $130\backslash \backslash$

$\backslash$hline Gross profit $($loss$)$ & $\backslash$$ & $106$ & $\backslash$$ & & $\backslash (34\backslash$times $\backslash )$ & $\backslash$$ & $72\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{8\}\{|$c$|\}\{2026\}\backslash \backslash$

$\backslash$hline & & & $\backslash$multicolumn$\{3\}\{|$c$|\}\{$Recognized in prior years$\}$ & $\backslash$multicolumn$\{2\}\{|$r$|\}\{$Recognized in $2026\}\backslash \backslash$

$\backslash$hline Construction revenue & $\backslash$$ & $390$ & $\backslash$$ & & $296$ & $\backslash$$ & $94\backslash \backslash$

$\backslash$hline Construction expense & $\backslash$$ & $250$ & $\backslash$$ & & $\backslash (190>\backslash )$ & $\backslash$$ & $60\backslash \backslash$

$\backslash$hline Gross profit $($loss$)$ & $\backslash$$ & $\backslash (140\backslash$times $\backslash )$ & $\backslash$$ & & $106$ & $\backslash$$ & $34\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Compute the revenue and gross profit that Sanderson will report in its $2024,2025,$ and $2026$ income statements related to this contract, assuming this project does not qualify for revenue recognition over time.

Note: Enter your answer in millions $($i$.$e$.,\backslash (\backslash$$ $4,000,000\backslash )$ should be entered as $\backslash (\backslash$$ $4\backslash )).$ Loss amounts should be indicated with a minus sign. Leave no cells blank. Complete this question by entering your answers in the tabs below.

Suppose the estimated costs to complete at the end of $2025$ are $\backslash (\backslash$$ $190\backslash )$ million instead of $\backslash (\backslash$$ $60\backslash )$ million. Compute the amount of revenue and gross profit or loss to be recognized in $2025,$ assuming Sanderson recognizes revenue over time according to percentage of completion.

Note: Enter your answer in millions $($i$.$e$.,\backslash (\backslash$$ $4,000,000\backslash )$ should be entered as $\backslash (\backslash$$ $4\backslash )).$ Use percentages as calculated and rounded in the table below to arrive at your final answer. Loss amounts should be indicated with a minus sign.

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