Required information
[The following information applies to the questionsdisplayed below.]
In 2018, the Westgate Construction Company entered into a contractto construct a road for Santa Clara County for $10,000,000. Theroad was completed in 2020. Information related to the contract isas follows:
| 2018 | 2019 | 2020 |
| Cost incurred during the year | $ | 2,204,000 | | $ | 3,192,000 | | $ | 2,424,400 | |
| Estimated costs to complete as of year-end | | 5,396,000 | | | 2,204,000 | | | 0 | |
| Billings during the year | | 2,140,000 | | | 3,256,000 | | | 4,604,000 | |
| Cash collections during the year | | 1,870,000 | | | 3,200,000 | | | 4,930,000 | |
|
Westgate recognizes revenue over time according to percentage ofcompletion.
Required:
1. Calculate the amount of revenue and grossprofit (loss) to be recognized in each of the three years.(Do not round intermediate calculations. Loss amountsshould be indicated with a minus sign.)
