On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington estimated costs to complete at year-end for the life of the contract are as follows (S in millions);: million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and 2018 2019 2020 Costs ineurred during the year Estinated costs to compiete as of December 31 30 $140 $40 170 80 Required: 1. Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion. 2. Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming this project does not qualify for revenue recognitioR over time. 3. Suppose the estimated costs to complete at the end of 2019 are $170 million instead of $80 million. Compute the amount of revenue and gross profit or loss to be recognized in 2019 using the percentage of completion method. Complete this question by entering your answers in the tabs below Required 1 Required 2Required 3 Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming this project does not qualify for revenue recognition over time. (Enter your answers in millions. Loss amounts should be indicated with a minus sign.) show less ▲ ross Year 2018 2019s 2020 350 million 01 million 0 million s million million mdlion Required! Required 3
