Show Attempt History Current Attempt in Progress Sheridan Construction Company began operations on January 1, 2023. During the year, Sheridan entered into a non-cancellable contract with Splish Corp. to construct a manufacturing facility. At that time, Sheridan estimated that it would take five years to complete the facility at a total cost of $4,540,000. The total contract price for construction of the facility is $6,001,000. During the year, Sheridan incurred $1,132,950 in construction costs related to the project. The estimated cost to complete the contract is $4,262,050. Splish was billed and paid 25% of the contract price. The billings are non-refundable. Prepare schedules to calculate the amount of gross profit to be recognized for the year ended December 31, 2023, and the amount to be shown as contract assets or liabilities at December 31, 2023, under each of the following methods. (a) Sheridan Construction Company Computation of Contract Liability Year Ended December 31, 2023 Construction costs incurred during the year Partial billings on contract Contract liability Textbook < > $ SA 1132950 1500250 i CA $ -367300 i Percentage-of-completion method. Sheridan Construction Company Computation of Gross Profit and Contract Liability Year Ended December 31, 2023 Contract price Estimated costs to complete 5395000 Estimated profit Total costs Percentage of completion Percentage of completion Gross profit Search 6001000 % 0.5/1 Estimated costs to complete Estimated profit Total costs Percentage of completion Percentage of completion Gross profit 7 5399000 $