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Wildhorse Enterprises Ltd. has entered into a contract beginning in February 2023 to build two warehouses for Sheffield Structures Ltd. The contract is a non-cancellable
Wildhorse Enterprises Ltd. has entered into a contract beginning in February 2023 to build two warehouses for Sheffield Structures Ltd. The contract is a non-cancellable fixed-price contract for $10 million. The following data pertain to the construction period (all figures in thousands). The construction industry has experienced significant expansion, making construction materials and labour more costly than originally estimated. Wildhorse finds it extremely difficult to estimate the costs to complete construction and therefore difficult to estimate the percentage complete. It must account for the construction project using the zero-profit method. Calculate the amount of the gross profit to be recognized each year of the contract. (Do not leave any answer field blank. Enter 0 for amounts. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
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