On June 15, 2021. Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington. D.C., for $400 million. The expected completion date is April 1, 2023. just in time for the 2023 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): Costs incurred during the year Estinated costs to complete as of December 31 2021 2022 2023 $ 90 $60 $80 150 50 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 $150 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 11 % complete to date 2021 $ 240 37.50% Percentages of completion Choose numerator Choose denominator Actual costs to date Estimated total costs 90 S 150 $ 230 $ 2021 To date Recognized in prior years 110 $ + 200 = 2022 2023 75.00% 100.00% $ 230 Recognized in 2021 0 Construction revenue Construction expense Gross profit (loss) $ s s 0 2022 Recognized in prior years To date Recognized in 2022 $ Construction revenue Construction expense Gross profit (loss) s $ ololo 2023 Recognized in prior years To date Recognized in 2023 0 Construction revenue Construction expense Gross profit (loss) $ $ 0 Ilus 0 Required 1 Required 2 Required 3 Compute the revenue and gross profit will Sanderson rep contract assuming this project does not qualify for reven amounts should be indicated with a minus sign.) Year Revenue Gross Profit (Loss) recognized recognized 2021 million million 2022 million million 2023 million million Percentages of completion Choose numerator Choose denominator = 11 % complete to date 2022 11 0 2022 Recognized in prior Years To date Recognized in 2022 $ 0 Construction revenue Construction expense Gross profit (loss) AGA S 0 $ 0