Reference no: EM132475976

In 2021, 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 2023. Information related to the contract is as follows:

                                                                                        2021                    2022                       2023

Cost incurred during the year                                $2,581,000        $2,347,000            $3,049,200

Estimated costs to complet as of year-end                6,319,000         2,772,000                   0

Billings during the year                                               2,090,000       2,838,000              5,072,000

Cash collections during the year                                   1,845,000        2,900,000           5,255,000

• Westgate recognizes revenue over time according to percentage of completion.

Question 1: 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.)

                                                                       2021                     2022                        2023

Costs incurred during the year                              $2,581,000         $3,845,000              $3,245,000

Estimated costs to complet as of year-end             6,319,000            3,145,000            0