Seved On June 15, 2021, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $320 million. The expected completion date is April 1, 2023. just in time for the 2023 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions Costs incurred during the year Estimated costs to complete as of December 1 2021 2022 2023 $600120050 1BD 70 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 $120 million instead of $70 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 Complete this question by entering your answers in the tabs below. Required: Required 2 required Compute the revenue and gross profit wil 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 million tons amount should be indicated with a minus sign. De percentages as cautated and munded in the table below to arrive at your new Percentages of completion Choose Choose denominato completo de 2021 2002 2023 0 4 8. 009 88 BO A * $ 4 % 5 6 3 8 7 2 W E R U TY YE Compute the revenue and gross profit will Sanderson report in its 2021, 2022, and 2023 Income statements related to this assuming Sanderson recognizes revenue over time according to percentage of completion. (Enter your answers in millions should be indicated with a minus sign. Use percentages as calculated and rounded in the table below to arrive at your final Percentages of completion Choose numerator Choose denominator % complete to date 2021 2022 2023 0 0 0 To date 2021 Recognized in prior years Recognized in 2021 $ Construction revenue Construction expense Gross profit (los) + 5 $ 0 o 0 To date 2022 Recognized in prior years Recognized in 2022 Construction revenue Construction expenso Gross profit (los) $ $ $ 0 0 To date 2023 Recognized in prior years Recognized in 2023 0 Construction revenue Construction en Gross proft (985) $ 5 $ 0 0 Required 2 > DOO 90 F3 F4 FS A # 3 $ 4 % 5 & 7 6 8 gross profit will Sanderson report in its 2021, 2022, and 2023 income statements derson 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 assuming this project does not quallfy for revenue recognition over time. 3. Suppose the estimated costs to complete at the end of 2022 are $120 million instead of $70 million. Compute revenue and gross profit or loss to be recognized in 2022 assuming Sanderson recognizes revenue over time acc percentage of completion. 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 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.) Year 2021 2022 2023 Revenge recognized million million Imation Gross Profit (Loss) recognized milion million million 80 73 000 # 3 $ 4 % 5 & 7 6 8 9 E BIY C nd 2023 income state entage of completion. report in its 2021 2022 and 2023 income state levenue recognition over time. to complete at the end of 2022 are $120 million instead of $70 million. Co Poss profit or loss to be recognized in 2022 assuming Sanderson recognizes revenue overt percentage of completion. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Suppose the estimated costs to coriplete at the end of 2022 are $120 million instead of $70 millon. Compute the amo and gross profit or loss to be recognized in 2022 using the percentage of completion method. (Enter your answers in percentages as calculated and rounded in the table below to arrive at your final answer) Percentages of completion Choose numerator Choose denominator 2022 % complete to dete To date Construction revenue Construction expense Gross profit (6) 2022 Recognized in prior Years Recognized in 2022 5 $ $ 0 F3 DOO 000 75 > # 3 $ A 4 % 5 6 & 7 1 9
