Solve for B:

Wildhorse Construction Company has entered into a contract beginning January 1, 2025, to build a parking complex. It has been estimated that the complex will cost $595,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $903,000. The following data pertain to the construction period.

		2025		2026		2027
Costs to date		$279,650		$487,900		$606,000
Estimated costs to complete		315,350		107,100		0
Progress billings to date		272,000		545,000		903,000
Cash collected to date		242,000		495,000		903,000

(a)

Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.)

Gross profit recognized in 2025		$144,760
Gross profit recognized in 2026		$ 107,800
Gross profit recognized in 2027		$ 44,400

(b)

Using the cost-recovery method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.)

Gross profit recognized in 2025		$enter a dollar amount
Gross profit recognized in 2026		$enter a dollar amount
Gross profit recognized in 2027		$enter a dollar amount