required 1-3
Chec 6 On June 15, 2021, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C, for $220 million. The expected completion date is April 1, 2023, just in time for the 2023 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): 2021 2022 2023 23 $ 40 $80 $50 Costs incurred during the year Estimated costs to complete as of December 31 points 120 60 Skipped Required 1. Compute the revenue and gross profit will Sanderson report in its 2021, 2022, and 2023 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion. 2. Compute the revenue and gross profit will Sanderson report in its 2021, 2022, and 2023 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 2022 are $80 million instead of $60 million. Compute the amount of revenue and gross profit or loss to be recognized in 2022 assuming Sanderson recognizes revenue over time according to percentage of completion. eBook Hint Complete this question by entering your answers in the tabs below. References Cher Required Required 2 Required 3 Compute the revenue and gross profit will Sanderson report in its 2021, 2022, and 2023 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion. (Enter your answers in millions. Loss amounts should be indicated with a minus sign. Use percentages as calculated and rounded in the table below to arive at your final answer.) 23 points Percentages of completion Choose numerator Choose denominator Skipped % complete to date + 2021 2022 eBook 2023 2021 Recognized in prior years To date Recognized in 2021 Hint Construction revenue Construction expense Gross profit (loss) S References 2022 To date Recognized in prior years Recognized in 2022 Construction revenue Construction expense C Gross profit (loss) 2023 To date Recognized in 2023 Recognized in prior years Construction revenue C Construction expense Gross profit (loss) 6 Required: 1. Compute the revenue and gross profit will Sanderson report in its 2021, 2022, and 2023 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion. 2. Compute the revenue and gross profit will Sanderson report in its 2021, 2022, and 2023 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 2022 are $80 million instead of $60 million. Compute the amount of revenue and gross profit or loss to be recognized in 2022 assuming Sanderson recognizes revenue over time according to percentage of completion. 23 points Skipped Complete this question by entering your answers in the tabs below. eBook Required Required 2 Required 3 Hint Compute the revenue and gross profit will Sanderson report in its 2021, 2022, and 2023 income statements related to this contract assuming this project does not qualify for revenue recognition over time. (Enter your answers in millions. Loss amounts should be indicated with a minus sign.) References Revenue Gross Profit (Loss) recognized million Year recognized million million 2021 million million 2022 million 2023 Required 3> Required 1 Required: 1. Compute the revenue and gross profit will Sanderson report in its 2021, 2022, and 2023 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion 2. Compute the revenue and gross profit will Sanderson report in its 2021, 2022, and 2023 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 2022 are $80 million instead of $60 million. Compute the amount of revenue and gross profit or loss to be recognized in 2022 assuming Sanderson recognizes revenue over time according to percentage of completion. 9 23 points Skipped Complete this question by entering your answers in the tabs below. eBook Required Required 2 Required 3 Hint Suppose the estimated costs to complete at the end of 2022 are $80 million instead of S60 million. Compute the amount of revense and gross profit or loss to be recognized in 2022 using the percentage of completion method. (Enter your answers in millions. Use percentages as calculated and rounded in the table below to arrive at your final answer.) References Percentages of completion Choose numerator Choose denominator % complete to date + 2022 2022 Recognized in 2022 To date Recognized in prior Years Construction revenue Construction expense Gross profit (loss) Required 2 Required 3
