On June 15, 2021, Sanderson Construction entered into a long term construction contract to build a baseball stadium in Washington D.C.for $110 million. The expected completion date is April 1, 2023. just in time for the 2023 baseball season Costs incurred and estimated costs to complete of year end for the life of the contract are as follows is in millions Cinsurred during the year Viticolto Dec 1 201302222 5:50 1150 145 100 Required 1. Compute the revenue and gross profit will Sanderson report in its 2021 2022 and 2022 income statements related to the contract assuming Sanderson recognizes revenue over time according to percentage of completion 2. Compute the revenue and gross profit will Sanderson report in its 2021 2022 and 2023 income statements related to this contract assuming this project does not quality for revenue recognition over time 3. Suppose the estimated costs to complete at the end of 2022 are $200 million instead of $50 million Compute the amount of revenue and gross profit or loss to be recognized in 2022 assuming Sanderson recognizes revenue over time according to percentage of completion Complete this question by entering your answers in the tabs below. Required 1 Heared2 Required Compute the revenue and gross profit wil Sanderson report in its 2021 2022 and 2023 income statements related to this contract assuming Sanderson recognires revenue over time according to percentage of completion Enter your answers in milion loss amounts should be indicated with a minus in the percentages as calculated and rounded in the table below to arrive at your final answer Percentages of completion Choose numero Choose denominator completo dal assuming Sanderson recognizes revenue over tid should be indicated with a minus sign. Use percentages as calculated and rounded in the table below to arrive at your final an Percentages of completion Choose numerator Choose denominator % complete to date 20.00% 2021 $ S 2022 2023 250 250 245 80.00% 100.00% S 50 $ 200 $ 245 $ 2021 Recognized in prior years 82 s 3285 (246) $ To date 0 US S Recognized in 2021 82 328 (246) 0 Construction revenue Construction expense Gross profit (loss) S $ $ 0 $ To date Construction revenue Construction expense Gross profit (loss) 2022 Recognized in prior years 66 $ 82 $ BAS 328 $ (246) Recognized in 2022 (16) (328) 246 2023 Recognized in prior years Recognized in 2023 To date $ 0 0 Construction revenue Construction expense Gross profit (loss) S S 2. Compute the revenue and gross profit will Sanderson report in its 2021 2022 and 2023 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 2022 are $200 million instead of $50 million Compute the amount of revenue and gross profit or loss to be recognized in 2022 assuming Sanderson recognizes revenue over time according to percentage of completion Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Compute the revenue and gross profit will Sanderson report in its 2021 2022, and 2023 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) Year Gross Profit (L03) recognized million 2021 2022 2023 Revenue recognized milion million million million million 2. Compute the revenue and gross profit will Sanderson reportinis 2021 2022 and 2023 Income statements related to this contract assuming this project does not quality for revenue recognition over time 3. Suppose the estimated costs to complete at the end of 2022 are $200 million instead of $50 million Compute the amount of revenue and gross profit or loss to be recognized in 2022 assuming Sanderson recognizes revenue over time according to percentage of completion Complete this question by catering your answers in the tabs below. leged 1 Required Suppose the estimated costs to complete at the end of 2022 are $200 million instead of $50 million Compute the amount of revenu and gross profit or loss to be recognized in 2022 using the percentage of completion methodCenter your answers in millions Use Bercentages as calculated and rounded in the table below to arrive at your final answer Percentages of completion Choose numer Choose comodate 2022 2022 Recognized in prior Years To date 0 Construction leven Construction exponse Os foto) Recognized in 2022 5 5 $
