Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9]

[The following information applies to the questions displayed below.] In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:

	2021			2022			2023
Cost incurred during the year	$	2,059,000		$	2,627,000		$	2,655,400
Estimated costs to complete as of year-end		5,041,000			2,414,000			0
Billings during the year		2,190,000			2,496,000			5,314,000
Cash collections during the year		1,895,000			2,400,000			5,705,000

Westgate recognizes revenue over time according to percentage of completion.

Problem 6-10 (Algo) Part 1

Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)