Return to question On June 15, 2021, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $430 million. The expected completion date is April 1, 2023, just in time for the 2023 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): Costs incurred during the year Estimated costs to complete as of December 31 2021 $ 40 210 2022 2023 $170 $60 140 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 $210 million instead of $140 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. 18 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 arrive at your final answer.) % complete to date 10 points Percentages of completion Choose numerator Choose denominator Actual costs to date Estimated total costs 40 250 e 210 $ IS 280 X 270 $ 60 X $ 16.00% 75.00% 450.00% OOOO 2021 2022 2023 $ $ 2021 Recognized in prior years Recognized in 2021 To date 69 0 69 $ 40 $ 0 40 $ 29 0 O Construction revenue Construction expense Gross profit (loss) $ $ 29 $ 2022 Recognized in prior years Recognized in 2022 167 To date 60 22 18 To date Recognized in 2022 167 $ 2022 Recognized in prior years 236 X $ 69 $ 170 $ 40 $ 66 X $ 29 IS 130 Construction revenue Construction expense Gross profit (loss) $ 10 points OO 37 2023 Recognized in prior years To date Recognized in 2023 430 430 $ $ $ Construction revenue Construction expense Gross profit (loss) 60 X 60 370 370 Required Required 2 >