On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $230 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): 2018 2019 2020 $ 25 $75 $35 Costs incurred during the year Estimated costs to complete as of December 31 100 60 Required: 1. Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion. 2. Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 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 2019 are $100 million instead of $60 million. Compute the amount of revenue and gross profit or loss to be recognized in 2019 using the percentage of completion method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required3 Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming this project does not qualify for revenue recognition over time. (Enter your answers in millions. Loss amounts should be indicated with a minus sign.) Revenue Year 2018 2019 Gross Profit (Loss) million million million million Required 1 Required 2 Required 3 Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion. (Enter your a millions. 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.) Show less Percentages of completion numerator- Choose denominator- % complete to date Actual costs to date Estimated total costs 2018 2019 2020 100.00% 2018 To date Recognized in prior years Recognized in 2018 Construction revenue Construction expense Gross proft (loss) 2019 To date Recognized in prior years Recognized in 2019 Construction revenue Construction expense Gross profit (loss) Required 1 Required 2 Required 3t Suppose the estimated costs to complete at the end of 2019 are $100 million instead of $60 million. Compute the amount of revenue and gross profit or loss to be recognized in 2019 using the percentage of completion method. (Enter millions. Use percentages as calculated your answers in and rounded in the table below to arrive at your final answer.) Percentages of completion Choose numerator Actual costs to date | + | Choose denominator |-| % complete to date stimated total costs 2019 2019 To date Recognized in prior Years Recognized in 2019 Construction revenue Construction expense Gross profit (loss) Required 2 Required 3
