On June 15, 2024, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $350 million. The expected completion date is April 1, 2026, just in time for the 2026 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): Costs incurred during the year Estimated costs to complete as of December 31 Required: 2024 $ 30 170 2025 $ 140 80 2026 $ 40 1. Compute the revenue and gross profit that Sanderson will report in its 2024, 2025, and 2026 income statements related to this contract, assuming Sanderson recognizes revenue over time according to percentage of completion. 2. Compute the revenue and gross profit that Sanderson will report in its 2024, 2025, and 2026 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 2025 are $170 million instead of $80 million. Compute the amount of revenue and gross profit or loss to be recognized in 2025, 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 that Sanderson will report in its 2024, 2025, and 2026 income statements related to this contract, assuming Sanderson recognizes revenue over time according to percentage of completion. Note: Enter your answer in millions (i.e., $4,000,000 should be entered as $4). 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 this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the revenue and gross profit that Sanderson will report in its 2024, 2025, and 2026 income statements related to this contract, assuming Sanderson recognizes revenue over time according to percentage of completion. Note: Enter your answer in millions (i.e., $4,000,000 should be entered as $4). 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. 2024 $ 2025 $ 2026 $ Percentages of completion 30 $ 170 $ 210 $ 2024 200 = 250 = 15.00% 68.00% 210 = 100.00% Recognized in 2024 0 $ 53 0 $ 0 0 $ 0 To date Recognized in prior years Construction revenue $ 53 $ Construction expense Gross profit (loss) $ $ 2025 To date Recognized in prior years Construction revenue Construction expense $ $ Gross profit (loss) $ Recognized in 2025 0 0 0 Show less 2025 $ 2026 $ 170 $ 210 $ 2024 Recognized in prior years To date Construction revenue $ 53 $ Construction expense Gross profit (loss) $ $ 2025 Construction revenue Construction expense Gross profit (loss) Construction revenue Construction expense Gross profit (loss) To date Recognized in prior years 250 = 210 68.00% 100.00% Recognized in 2024 0 $ 53 0 $ 0 0 $ 0 Recognized in 2025 $ 0 $ 0 $ 0 2026 To date Recognized in prior years Recognized in 2026 $ 0 $ 0 $ 0 < Required 1 Required 2 >