On April $1,2025,$ Sunland Inc. entered into a cost plus fixed fee contract to construct an electric generator for Novak Corporation. At

the contract date, Sunland estimated that it would take $2$ years to complete the project at a cost of $$1,930,000.$ The fixed fee

stipulated in the contract is $$459,000.$ Sunland appropriately accounts for this contract under the percentage$-$of$-$completion method.

During $2025,$ Sunland incurred costs of $$829,900$ related to the project. The estimated cost at December $31,2025,$ to complete the

contract is $$1,100,100.$ Novak was billed $$566,000$ under the contract.

Prepare a schedule to compute the amount of gross profit to be recognized by Sunland under the contract for the year ended

December $31,2025.($If an amount reduces the account balance then enter with negative sign., e$.$g$.-45$ or parentheses e$.$g$.(45).)$

SUNLAND INC.

Computation of Gross Profit to be

Recognized on Uncompleted Contract

Year Ended December $31,2025$

Total Contract Price

Estimated Contract Cost at Completion

Fixed Fee

Total

Total Estimated Cost

Gross Profit

Percentage of Completion

Gross Profit to be Recognized

$