Required information [The following information applies to the questions display

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Required information [The following information applies to the questions displayed below.] In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows: 2018 2019 2020 Cost incurred during the year $ 2,490,000 $ 3,984,000 $ 2,008,600 Estimated costs to complete as of year-end 5,810,000 1,826,000 0 Billings during the year 2,030,000 4,444,000 3,526,000 Cash collections during the year 1,815,000 3,900,000 4,285,000 Westgate recognizes revenue over time according to percentage of completion. rev: 09_15_2017_QC_CS-99734 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 $ 2,490,000 $ 3,815,000 $ 3,945,000 Estimated costs to complete as of year-end 5,810,000 4,130,000 0 rev: 09_15_2017_QC_CS-99734 Next Visit question mapQuestion 5 of 8 Total 5 of 8 Prev

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Percentage completion method 2018 2019 2020 Cost incurred in till previous year 0 2490000 6474000 ADD Cost incurred during the year 2490000 3984000 2008600 Total cost incurred till date 2490000 6474000 8482600 ADD Estimated cost to be incurred 5810000 1826000 0 Total estimated cost to be incurred 8300000 8300000 8482600 Percentage of completion (A) 30% 78.00% 100% (cost incurred till date /total estimated cost ) Total revenue (B) 10000000 10000000 10000000 Total revenue recognized (A *B) 3000000 7800000 10000000 Less Revenue recognized in previous year 0 3000000 7800000 revenue recognized in current year 3000000 4800000 2200000 2018 2019 2020 Revenue 3000000 4800000 2200000 Less Cost incurred 2490000 3984000 2008600 Gross profit 510000 816000 191400

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