On June 15, 2016, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $360 million. The expected completion date is April 1, 2018, just in time for the 2018 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions):

	2016			2017			2018
Costs incurred during the year	$	30		$	140		$	40
Estimated costs to complete as of December 31		170			80

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3.	Suppose the estimated costs to complete at the end of 2017 are $170 million instead of $80 million. Compute the amount of revenue and gross profit or loss to be recognized in 2017 using the percentage of completion method. (Do not round intermediate calculations. Enter your answer in millions. Round your answers to 1 decimal place. Losses and expenses should be indicated with a minus sign.)

1. Compute the revenue and gross profit will Sanderson report in its 2016, 2017, and 2018 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion. (Enter your answers in million. Use percentages as calculated and rounded in the table below to arrive at your final answer. Losses and expenses should be indicated with a minus sign.) Answer is complete and correct. 2018 2016 2017 Estimated total gross profit (loss) 160 $ 110 Actual total gross profit (loss) $ 150 Answer is complete and correct. Percentages of completion Choose % complete to date Choose numerator denominator Estimated total Actual costs to date $ costs 2016 30 200 15.00% 2017 170 250 68.00% 2018 100.00% Answer is complete and correct. 2016 Recognized in prior years Recognized in 2016 To date Construction revenue 54 $ 0 54 Construction expense $ $ (30) (30) 0 Gross profit (loss) $ $ 24 0 24 2017 Recognized in 2017 Recognized in prior years To date Construction revenue $ $ 245 54 191 Construction expense Gross profit (loss) $ $ $ (170) (30) (140) 75 24 51 2018 Recognized in prior years Recognized in 2018 To date Construction revenue 360 S $ 245 115 Construction expense $ $ (210) (170) (40) Gross profit (loss) $ 150 $ 75 75 2. Compute the amount of revenue and gross profit or loss to be recognized in 2016, 2017, and 2018 using the completed contract method. (Enter your answers in millions.) Answer is complete and correct. Gross Profit (Loss) recognized Revenue Year recognized 2016 0 million 0 million 2017 0 million 0 million 2018 360 million 150 million 3. Suppose the estimated costs to complete at the end of 2017 are $170 million instead of $80 million. Compute the amount of revenue and gross profit or loss to be recognized in 2017 using the percentage of completion method. (Do not round intermediate calculations. Enter your answer in millions. Round your answers to 1 decimal place. Losses and expenses should be indicated with a minus sign.) Answer is not complete. 2017 Estimated total gross loss