Waterway Construction Company has entered into a contractbeginning January 1, 2020, to build a parking complex. It has beenestimated that the complex will cost $600,000 and will take 3 yearsto construct. The complex will be billed to the purchasing companyat $901,000. The following data pertain to the constructionperiod.
| | 2020 | | 2021 | | 2022 |
| Costs to date | | $246,000 | | $432,000 | | $612,000 |
| Estimated costs to complete | | 354,000 | | 168,000 | | –0– |
| Progress billings to date | | 270,000 | | 546,000 | | 901,000 |
| Cash collected to date | | 240,000 | | 496,000 | | 901,000 |
(a) Using the percentage-of-completion method,compute the estimated gross profit that would be recognized duringeach year of the construction period. (If answer is 0,please enter 0. Do not leave any fieldsblank.)
| Gross profit recognized in 2020 | | $ |
| Gross profit recognized in 2021 | | $ |
| Gross profit recognized in 2022 | | $ |
(b) Using the completed-contract method, computethe estimated gross profit that would be recognized during eachyear of the construction period. (If answer is 0,please enter 0. Do not leave any fieldsblank.)
| Gross profit recognized in 2020 | | $ |
| Gross profit recognized in 2021 | | $ |
| Gross profit recognized in 2022 | | $ |
