Can someone help ASAP Can someone help ASAP Connect o https:/mewornotrnheducatio
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Can someone help ASAP Can someone help ASAP Connect o https:/mewornotrnheducation Chapter 15-Quiz #50 Help Save &Exit; Submis On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C. for $370 mlion The evpected competon date Is Aprl 2020,just estimated costs to complete at year-end for the life of the contract are as follows (S in milions) n time for the 2020 baseball season Costs incurred and Costs incurred during the year Estimated costs to complete as of December 31 188 70 $118 $80 68 eook 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 recognition over time 3. Suppose the estimated costs to complete at the end of 2019 are $180 million instead of $60 milion. 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 2 Required 3 contract assurming Sanderson recognizes revenue over time according to percentage of completion. (Enter your answers in millions. Loss amoun Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this amounts should be indicated with a minus sign. Use percentages as calculated and rounded in the table below Prev 1 of NextExplanation / Answer
Requirement 1 2018 2019 2020 Conract price $ 370 $ 370 $ 370 Actual cost to date (cumulative) $ 70 $ 180 $ 260 Estimated cost to complete $ 180 $ 60 Total estimated costs $ 250 $ 240 $ 260 Estimated gross profit $ 120 $ 130 $ 110 Actual cost/ Total estimated cost % 28% 75% 100% Revenue to be recognized $ 103.60 $ 173.90 $ 92.50 Gross profit (Revenue-yearly cost) $ 33.60 $ 63.90 $ 12.50 Requirement 2 2018 2019 2020 Revenue to be recognized $ - $ - $ 370.00 Gross profit (Revenue-yearly cost) $ - $ - $ 110.00 Requirement 3 2018 2019 Conract price $ 370 $ 370 Actual cost to date (cumulative) $ 70 $ 180 Estimated cost to complete $ 180 $ 180 Total estimated costs $ 250 $ 360 Estimated gross profit $ 120 $ 10 Actual cost/ Total estimated cost % 28% 50% Revenue to be recognized $ 103.60 $ 81.40 Gross profit (Revenue-yearly cost) $ 33.60 $ (28.60)