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.

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 130 30 December 31 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 Required Required 1 2 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.) Show less Percentages of completion Choose numerator % complete to Choose denominator = date 2022 0 To date Construction revenue Construction expense Gross profit (loss) 2022 Recognized in prior Recognized in 2022 Years $ $ $ 0 0 0 Required 2 Required 3