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On June 15, 2021, Sanderson Construction entered into a long-term construction contract to build a baseball stan's Washington, D.C. for $20 million. The expected completion

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On June 15, 2021, Sanderson Construction entered into a long-term construction contract to build a baseball stan's Washington, D.C. for $20 million. The expected completion date is April 1, 2023. just in time for the 2023 hours season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows (S in milie 2021 2022 2023 E 6-20 Long-term contract; revenue recognition over time vs. upon project completion LO6 9 Costs incurred during the year $ 40 $ 80 $ 50 120 60 Estimated costs to complete as of December 31 Required: 1. How much 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. How much 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 $80 million instead of $60 million. Determine the amount of revenue and gross profit or loss to be recognized in 2022 assuming Sanderson recognizes revo nue over time according to percentage of completion. On June 15, 2021, Sanderson Construction entered into a long-term construction contract to build a baseball stan's Washington, D.C. for $20 million. The expected completion date is April 1, 2023. just in time for the 2023 hours season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows (S in milie 2021 2022 2023 E 6-20 Long-term contract; revenue recognition over time vs. upon project completion LO6 9 Costs incurred during the year $ 40 $ 80 $ 50 120 60 Estimated costs to complete as of December 31 Required: 1. How much 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. How much 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 $80 million instead of $60 million. Determine the amount of revenue and gross profit or loss to be recognized in 2022 assuming Sanderson recognizes revo nue over time according to percentage of completion

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