Long-Term Contracts

Newberg Construction Corporation contracted to construct a building for $400,000. Construction began in 2017 and was completed in 2018. Data relating to the contract are as follows:

	Year Ended December 31,
	2017	2018
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, 2017 and 2018, 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
2017 and 2018
	2017	2018
Costs incurred to date	$	$
Estimated costs to complete	$100,000
Percent completed	%	%
Estimated profit on contract	$	$
Gross profit to be recognized	$	$