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On June 15, 2016, Sanderson Construction entered into a long-term construction contract to build a...

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Accounting

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On June 15, 2016, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $250 million. The expected completion date is April 1, 2018, just in time for the 2018 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows in millions) 2016 2017 2018 Costs incurred during the year 80 $40 $30 Estimated costs to complete as of December 31 120 30 Required 1. Compute the revenue and gross profit will Sanderson report in its 2016, 2017, and 2018 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion. (Enter your answers in million. Use percentages as calculated and rounded in the table below to arrive at your final answer. Losses and expenses should be indicated with a minus sign.) 2016 2017 2018 Estimated total gross profit (loss) 120 30 Actual total gross profit (loss) Percentages of completion Choose numerator Choose denominator complete to date 2016 2017 100.00% 2018

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