Reference no: EM132931031
Beck Construction Company began work on a new building project on January 1, 2020. The project is to be completed by December 31, 2022, for a fixed price of $137 million.
The following are the actual costs incurred and estimates of remaining costs to complete the project that were made by Beck's accounting staff:
Years Actual costs incurred in each year Estimated remaining costs to complete the project (measured at Dec. 31 of each year)
2020 $38million $76million
2021 $61million $61million
2022 $43million $0
Required:
Problem 1: What amount of gross profit (or loss) would Beck record on this project in each year, assuming that Beck recognizes revenue for this project upon completion of the project? (Loss amounts should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)