Current Attempt in Progress

Ivanhoe Construction Company has entered into a contract beginning January $1,2025,$ to build a parking complex. It

has been estimated that the complex will cost $$598,000$ and will take $3$ years to construct. The complex will be billed to

the purchasing company at $$897,000.$ The following data pertain to the construction period.

$($a$)$

Your answer is partially correct.

Using the percentage$-$of$-$completion method, compute the estimated gross profit that would be recognized during

each year of the construction period. $($of answer is $0,$ please enter $0.$ Do mot leave any frelds blank.$)$

Gross profit recognized in $2025$$

Gross profit recognized in $2026$$

Gross profit recognized in $2027$ $

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Solution

$($b$)$

Using the cost$-$recovery method, compute the estimated gross profit that would be recognized during each year of

the construction period. $($if answer is $O,$ please enter $Q.$ Do mot leave any fields blank.$)$

Gross profit recognized in $2025$$

Gross profit recognized in $2026$$

Gross profit recognized in $2027$ $