roblem 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	$	2,550,000		$	4,250,000		$	1,870,000
Estimated costs to complete as of year-end		5,950,000			1,700,000			0
Billings during the year		2,050,000			4,750,000			3,200,000
Cash collections during the year		1,825,000			4,100,000			4,075,000

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.