Long-Term Contracts Newberg Construction Corp. contracted to construct a building for $400,000. Construction began in 2019 and was completed in 2020. Data relating to the contract are as follows: Year Ended December 31, 2019 2020 Costs incurred $200,000 $110,000 Estimated costs to complete 100,000 Newberg determined that its performance obligation was satisfied over time. Required Newberg uses the percentage-of-completion method as the basis for income recognition. For the years ended December 31, 2019 and 2020, respectively, how much gross profit should Newberg report? If required, round percentage completed to one decimal place. When required, round dollar amounts to the nearest dollar. NEWBURG CONSTRUCTION CORPORATION Gross Profit / Loss Reported 2019 and 2020 2019 2020 Costs incurred to date 200,000 $ 110,000 X Estimated costs to complete $100,000 Percent completed 66.7 % 100 % Estimated profit on contract 100,000 90,000 Gross profit to be recognized 66,670 X 23,330 Feedback Check My Work When you use the percentage-of-completion method, you should determine the percentage completed by using either input or output measures. An input to the production activity may be used to measure the percentage of completion if a relationship exists between the input and the production activity. You should measure the percentage of completion by comparing the costs incurred to date with the expected total costs for the contract