Problem 18 10 On March 1, 2017, Bridgeport Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc for a total contract price of $8,340,000 The building was completed by October 31, 2019 The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2017, 2018, and 2019 are given below 2017 2018 2019 Contract costs incurred during the year $2,811,600 $2,152,400 $2,336,000 Estimated costs to complete the contract at 12 31 3,578,400 2,336,000 0 Billings to Fabrik during the year 3,210,000 3,470,000 1,660,000 (a) Using the percentage of completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2017, 2018, and 2019 (Ignore income taxes ) (b) Using the completed contract method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2017, 2018, and 2019 (Ignore income taxes )

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Problem 18-10 On March 1, 2017, Bridgeport Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of

Problem 18-10

On March 1, 2017, Bridgeport Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,340,000. The building was completed by October 31, 2019. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2017, 2018, and 2019 are given below:

	2017	2018	2019
Contract costs incurred during the year	$2,811,600	$2,152,400	$2,336,000
Estimated costs to complete the contract at 12/31	3,578,400	2,336,000	0
Billings to Fabrik during the year	3,210,000	3,470,000	1,660,000

(a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2017, 2018, and 2019. (Ignore income taxes.)

(b) Using the completed-contract method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2017, 2018, and 2019. (Ignore income taxes.)