Problem :

Curtiss Construction Company, Inc., entered into a fixed-price contract with Axelrod Associates on July 1, 2018, to construct a four-story office building. At that time, Curtiss estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $5,140,000. Curtiss concludes that the contract does not qualify for revenue recognition over time. The building was completed on December 31, 2020. Estimated percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Axelrod under the contract were as follows:

	At 12-31-2018	At 12-31-2019	At 12-31-2020
Percentage of completion	10%	60%	100%
Cost Incurred to Date	445000	3260000	5599000
Estimated Costs to Complete	3340000	2270000	0
Billings to AxelRod, to date	1005000	2550000	5140000

Compute gross profit or loss to be recognized as a result of this contract for each of the three years. AND

Assuming Curtiss recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years.

	Gross Profit (Loss) Recognized "Upon Completion"	Gross Profit (Loss) Recognized "Over Time"
2018	$
2019
2020
Total Project Profit(Loss)