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On June 15, 2021, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C for $360 million. The expected

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On June 15, 2021, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C for $360 million. The expected completion date is April 1, 2023.just in time for the 2023 baseball season Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions) 2021 5:30 170 Costa incurred during the year Estimated costo to complete o of December 31 2022 $140 80 2023 340 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 $170 million instead of $80 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 Sandersion 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 finalanower) Percentages of completion Choose numerator Choose denominator % complete to date 5 30 0 2021 2022 2023 D 2021 Recognized in prior years To date Recognized in 2021 Construction revenue Construction expense 5 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.) Percentages of completion Choose numerator Choose denominator % complete to date $ 301 2021 2022 2023 0 0 0 2021 Recognized in prior years To date Recognized in 2021 Construction revenue Construction expense Gross profit (los) 2022 Recognized in prior years To date Recognized in 2022 Construction revenue Construction expense Gross profit (los) 2023 Recognized in prior years To date Recognized in 2023 Construction revenue Construction expense Grons profit (osa) Required > On June 15, 2021, 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, 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 (5 in millions Costs incurred during the year Estimated costs to complete of December 31 2021 $ 30 170 2022 2023 340 80 $149 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 wil 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 $170 million instead of $80 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 this project does not qualify for revenue recognition over time. (Enter your answers in milions. Los amounts should be indicated with a minus in.) Revenue Gross Pront (LR) Your recognized recognized 2021 million millon 2022 million million 2023 million milion (Required 1 Required 3 > Corts incurred during the year Estimated costs to complete as of December 31 2021 $ 30 170 2022 2023 $140 $40 89 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 $170 million instead of $80 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 Suppose the estimated costs to complete at the end of 2022 are $170 million instead of $80 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. Percentages of completion Choose numerator Choose denominator complete to date 0 2022 V 2022 Recognized in prior Years To date Construction revenue Construction expense Gross profit loss) Recognized in 2022 5 S S 0

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