Answer:
Percentage of completion method
2018 2019 2020
revenue(10mil*%complete) $3888890 $5258030 $853080
cost incurred -$2184000 - $3860000 -$4080000
Gross profit $1704890 $1398030 -$3226920
percent complete 2018 2019 2020
cost incurred/ estimated cost 38.3889% 91.4692% 100%
Revenues for 2019 = contract price * %complete - 2018 revenues
Revenues for 2020 = total contract price - revenues for 2018 and 2019
Explanation:
COMPLETE QUESTION BELOW
5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)
2018 2019 2020
Cost incurred during the year $ 2,184,000 $ 3,860,000 $ 4,080,000
Estimated costs to complete as of year-end 5,616,000 4,220,000 0
2018 2019 2020
Revenue
Gross profit (loss)
UPDATE: Contract price is $10,000,000
