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Sanderson Construction
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Question 1. Determine the amount of gross profit or loss to be recognized in each of the three years using the percentage- of-completion method.
Question 2. How much revenue will Sanderson report in its 2011 and 2012 income statements related to this contract using the percentage-of-completion method?
Question 3. Determine the amount of gross profit or loss to be recognized in each of the three years using the completed contract method.
Question 4. Determine the amount of revenue, cost, and gross profit or loss to be recognized in each of the three years under IFRS, assuming that using the percentage-of-completion method is not appropriate.
Question 5. Suppose the estimated costs to complete at the end of 2012 are $80 million instead of $60 million. Determine the amount of gross profit or loss to be recognized in 2012 using the percentage-of-completion method.
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