Reference no: EM132787179

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:

Cost incurred during the year                                 2021                        2022                    2023
                                                                    $2,581,000            $2,347,000     $3,049,200
Estimated costs to complete                                6,319,000              $2,772,000      0
as of year-end
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.

Problem 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)