Brief Exercise $6-36($Algo$)$ Long$-$term contract; revenue recognition; loss on entire project $[$L$06-9]$

Franklin Construction entered into a fixed$-$price contract to build a freeway$-$connecting ramp for $$24$ million. Construction costs

incurred in the first year were $$14$ million and estimated remaining costs to complete at the end of the year willion.

How much gross profit or loss will Franklin recognize in the first year if it recognizes revenue over time according to percentage of

completion?

How much gross profit or loss will Franklin recognize in the first year if it instead recognizes revenue upon contract completion?

Answer is not complete.

Complete this question by entering your answers in the tabs below.

How much gross profit or loss will Franklin recognize in the first year if it recognizes revenue over time according to

percentage of completion?

Note: Enter your answer in millions $($i$.$e$.,$ $$4,000,000$ should be entered as $$4).$