Reference no: EM132546165

On February 1, 2020, Blossom Contractors agreed to construct a building at a contract price of $3,430,000. The total estimated construction costs would be $2,405,000 and the project would be finished in 2022.

Information relating to the costs and billings for this contract is as follows:

                                                            2020                        2021                    2022

Total costs incurred to date            $865,800             $1,290,000           $2,250,000

Estimated costs to complete           1,539,200           1,290,000                  -0-

Customer billings to date               1,100,000            2,405,000                3,430,000

Collections to date                      1,000,000              1,750,000                  2,950,000

Question 1: Calculate the gross profit / (loss) that should be recognized for 2020, 2021, and 2022 using the percentage completion method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)