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Windsor Construction Company has entered into a contract beginning January 1,2020, to build a parking...

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Accounting

Windsor Construction Company has entered into a contract beginning January 1,2020, to build a parking complex. It has been estimated that the complex will cost $606,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $891,000. The following data pertain to the construction period.
202020212022
Costs to date $260,580 $446,620 $618,000
Estimated costs to complete $345,420 $139,380 $0
Progress billings to date $272,000 $551,000 $891,000
Cash collected to date 242,000501,000891,000
(a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period.
Gross profit recognized in 2020 $
Gross profit recognized in 2021 $
Gross profit recognized in 2022 $
(b) Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period.
Gross profit recognized in 2020 $
Gross profit recognized in 2021 $
Gross profit recognized in 2022 $

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