Question 2 (10 points) Bonobo Builders Company has agreed on a contract price of $4,000,000 to build a hospital. The contract period is 5 years and costs incurred are as follows. 2020 2021 2022 2023 2024 Costs incurred in year 100,000 250,000 300,000 200,000 150,000 Estimated costs to complete 850,000 650,000 400,000 200,000 - Progress billings 200,000 600,000 1,000,000 200,000 2,000,000 Cash collections 150,000 500,000 800,000 200,000 1,500,000 Instructions Bonobo Builders Company would like you to compute the following amounts for this construction contract.

(1) Compute the amount of gross profit recognized on this contract at the end of year 2023.

(2) Compute the ending balance of accounts receivable at December 31, 2023.

(3) Determine whether the constructions in progress account should be classified as an asset or a liability at December 31, 2023.