The board of directors of Sheridan Construction Company is meeting to choose between the cost$-$recovery method and the

percentage$-$of$-$completion method of accounting for long$-$term contracts in the company's financial statements. You have been

engaged to assist Sheridan's controller in the preparation of a presentation to be given at the board meeting. The controller provides

you with the following information:

Sheridan commenced doing business on January $1,2024.$

Construction activities for the year ended December $31,2024,$ were as follows:

Each contract is with a different customer.

Any work remaining to be done on the contracts is expected to be completed in $2025.$

$($a$)$

Your answer is incorrect.

Compute the amount of income $($or loss$)$ before selling, general, and administrative expenses for the year ended December $31,$

$2024,$ which would be reported under:

$(1)$ The cost$-$recovery method.

$(2)$ The percentage$-$of$-$completion method $($based on estimated costs$).$ $