Exercise $6-20(Algo)$ Long$-$term contract; revenue recognition over time $vs.$ upon project completion $[LO6-9]$

$On$ June $15,2024,$ Sanderson Construction entered into a long$-$term construction contract $to$ build a baseball stadium $in$ Washington, $D.C.,$ for $$320$ million. The expected completion date $is$ April $1,2026,$ just $in$ time for the $2026$ baseball season. Costs incurred and estimated costs $to$ complete $at$ year$-$end for the life $of$ the contract are $as$ follows $($$ $in$ millions$)$:

$202420252026$Costs incurred during the year$ $80$$ $40$$ $90$Estimated costs $to$ complete $asof$ December $3112080-$

Required:

Compute the revenue and gross profit that Sanderson will report $in$ its $2024,2025,$ and $2026$ income statements related $to$ this contract, assuming Sanderson recognizes revenue over time according $to$ percentage $of$ completion.

Compute the revenue and gross profit that Sanderson will report $in$ its $2024,2025,$ and $2026$ income statements related $to$ this contract, assuming this project does not qualify for revenue recognition over time.

Suppose the estimated costs $to$ complete $at$ the end $of2025$ are $$120$ million instead $of$ $$80$ million. Compute the amount $of$ revenue and gross profit $or$ loss $tobe$ recognized $in2025,$ assuming Sanderson recognizes revenue over time according $to$ percentage $of$ completion.