Shanahan Construction Company has entered into a contract beginning January $1,20x5,$ to

build a parking complex. It has been estimated that the complex will cost $$600,000$ and will take

$3$ years to construct. The complex will be billed to the purchasing company at $$900,000.$ The

following data pertain to the construction period.

Required:

A$.$ Using the percentage$-$of$-$completion method, compute the estimated gross profit that

would be recognized during each year of the construction period.

B$.($ii$)$ Using the cost$-$recovery method, compute the estimated gross profit that would

be recognized during each year of the construction period.

What is negative goodwill? How to treat the negative goodwill in the consolidated financial

statements? $[2]$