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2. Mikell Builders contracted to build a high-rise for $8,000,000. Construction began in 2021...

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Accounting

2. Mikell Builders contracted to build a high-rise for $8,000,000. Construction began in 2021 and is expected to be completed in 2023. Data for 2021,2022, and 2023 are:
202120222023
Costs to date 3,500,0004,200,0006,750,000
Estimated costs to complete 2,500,0002,200,0000
Mikell uses the percentage-of-completion method.
Required:
a. Compute the amount of gross profit (loss) that Mikell must report for 2021.
b. Compute the amount of gross profit (loss) that Mikell must report for 2022.
c. Compute the amount of gross profit (loss) that Mikell must report for 2023.
d. Assume instead that Mikell uses the completed contract method. Compute the amount of gross profit (loss) that Mikell must report for each the three years -2022,2022, and 2023.

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