On June 15, 2021, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $310 million. The expected completion date is April 1, 2023, just in time for the 2023 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions):

	2021			2022			2023
Costs incurred during the year	$	70		$	60		$	30
Estimated costs to complete as of December 31		130			30

Required: 1. Compute the revenue and gross profit will Sanderson report in its 2021, 2022, and 2023 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 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 $120 million instead of $30 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 3 Compute the revenue and gross profit will Sanderson report in its 2021, 2022, and 2023 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion. (Enter your answers in 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 = % complete to date 2021 2022 2023 $ Percentages of completion Choose numerator Choose denominator Actual costs to date Estimated total costs 109 - $ 143 - $ 58 X 2021 To date Recognized in prior years 167 $ 70 $ 97 X $ 39 X 83 X 28 X 279.49% 172.29% 207.14% Construction revenue Construction expense Gross profit (loss) 0 0 0 $ $ $ Recognized in 2021 167 70 97 To date Construction revenue Construction expense Gross profit (loss) 252 130 122 2022 Recognized in prior years $ 167 $ 70 $ 97 $ $ $ Recognized in 2022 85 60 25 $ Recognized in 2023 $ 2023 Recognized in prior years $ 252 $ 130 $ 121,875,000 Construction revenue Construction expense Gross profit (loss) 58 To date 310 160 150,000,000 30 28,125,000 $ $ Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 2021 2022 2023 $ $ $ Revenue recognized 0 million 0 million 310 million $ $ $ Gross Profit (Loss) recognized -70 million -60 million 280 million Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Suppose the estimated costs to complete at the end of 2022 are $120 million instead of $30 million. Compute the amount of revenue and gross profit or loss to be recognized in 2022 using the percentage of completion method. (Enter your answers in millions. Use percentages as calculated and rounded in the table below to arrive at your final answer.) % complete to date Percentages of completion Choose numerator Choose denominator Actual costs to date Estimated total costs 53 - $ (7) X 2022 = 0.00% To date Construction revenue Construction expense Gross profit (loss) 161 130 31 2022 Recognized in prior Years 87 $ 70 $ $ 17 $ Recognized in 2022 - 74 60 14