(a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2020, 2021, and 2022. (Ignore income taxes.) (If answer is 0, please enter 0. Do not leave any field blank. If an amount should be deducted then enter the amount using either a negative sign prececeding the number e.g. -45 or parenthesis e.g. (45).)

On July 1, 2020, Sheridan Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,900,000. On July 1, Sheridan estimated that it would take between 2 and 3 years to complete the building. On December 31, 2022, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Gumbel for 2020, 2021, and 2022. At 12/31/20 At 12/31/22 Contract costs incurred to date Estimated costs to complete the contract Billings to Gu bel $315,000 1,185,000 290,000 At 12/31/21 $1,140,000 860,000 1,110,000 $2,096,200 -0- 1,840,000 2020 Costs to date (12/31/20) $ 315000 Estimated Costs to Complete 1185000 Estimated Total Costs $ 1500000 Percent Complete 21 % Revenue Recognized $ 399000 Costs Incurred -315000 Profit /(Loss) Recognized in 2020 $ 84000 2021 Costs to date (12/31/21) $ 1140000 Estimated Costs to Complete 860000 Estimated Total Costs 2000000 Contract Price 1900000 Total Profit/Loss $ (141000) Total Profit/Loss $ (141000) Gross Profit Recognized in 2020 84000 Profit/(Loss) Recognized in 2021 A (141000) 2022 Costs to date (12/31/22) $ 2096200 Estimated Costs to Complete 0 2096200 Contract Price 1900000 Total Profit/Loss (139200) Total Profit/Loss $ (139200) Profit /(Loss) Recognized in 2021 $ (141000) Profit/ (Loss) Recognized in 2020, 84000 (57000) Profit /(Loss) Recognized in 2022 $ -196200 (b) Using the completed-contract method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2020, 2021, and 2022. (Ignore income taxes.) (If answer is 0, please enter 0. Do not leave any fields blank. If an amount should be deducted then enter the amount using either a negative sign prececeding the number e.g.-45 or parenthesis e.g. (45).) 2021 Contract Price 1900000 Estimated Total Costs 1500000 Profit/(Loss) Recognized in 2021 $ 40000 2022 Contract Price $ 1900000 Costs Incurred 825000 Total Profit/(Loss) on Contract Profit/(Loss) Recognized in 2021 Profit/(Loss) Recognized in 2022 - $