Saved Help ssignments 6 and 7 A On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $330 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): Costs incurred during the year Estimated costs to complete as of December 31 2018 2019 2020 $ 50 $100 $60 150 90 Required: 1. Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 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 2018, 2019, and 2020 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 2019 are $150 million instead of $90 million. Compute the amount of revenue and gross profit or loss to be recognized in 2019 using the percentage of completion method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 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.) Show less Percentages of completion Choose numerator Choose denominator = % complete to date 2018 2019 2020 0 0 100.00% 2018 Recognized in prior years To date Construction revenue Recognized in 2018 5 MacBook AS FI F2 20 888 75 11 97 59 . 510 A # 3 2 $ 4 % 5 & 7 6 00 * 9 1 0 W E R T Y U O S D F G H J K L Saved r 6 - Assignments 6 and 7 0 B Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income stater contract assuming Sanderson recognizes revenue over time according to percentage of completion. (Er millions. Loss amounts should be indicated with a minus sign. Use percentages as calculated and round to arrive at your final answer.) Percentages of completion Choose numerator Choose denominator % complete to date ped 2018 + 0 2019 0 2020 100.00% 2018 Ask To date Recognized in prior years Recognized in 2018 Construction revenue $ 0 Print $ 0 Construction expense Gross profit (loss) $ 0 Eferences 2019 To date Recognized in prior years Recognized in 2019 $ Construction revenue Construction expense Gross profit (loss) 0 $ $ 0 2020 To date Recognized in prior years Recognized in 2020 $ 0 Construction revenue Construction expense Gross profit (loss) 0 $ $ 0 Required 2 Mc Education MacBook Air FI F2 F3 000 F4 F6 F7 FB @ * # 3 1 $ 4 % 5 2 ON 6 8 Saved gnments 6 and 7 A $60 Costs incurred during the year Estimated costs to complete as of December 31 $ 50 150 $100 90 Required: 1. Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 202 assuming Sanderson recognizes revenue over time according to percentage of completic 2. Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 202 assuming this project does not qualify for revenue recognition over time. 3. Suppose the estimated costs to complete at the end of 2019 are $150 million instead of revenue and gross profit or loss to be recognized in 2019 using the percentage of comple Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Suppose the estimated costs to complete at the end of 2019 are $150 million instead of $90 m revenue and gross profit or loss to be recognized in 2019 using the percentage of completion m millions. Use percentages as calculated and rounded in the table below to arrive at your final ar Percentages of completion Choose numerator Choose denominator + % complete to date 2019 0 2019 To date Construction revenue $ Recognized in 2019 $ 82 Recognized in prior Years 165 $ 83 150 $ 50 15 s 33 Construction expense Gross profit (loss) $ $ 100 $ $ (18)
