On June $15,2024,$ Sanderson Construction entered into a long$-$term construction contract to build a baseball stadium in Washington, D$.$C$.,$ for $\backslash (\backslash$$ $430\backslash )$ million. The expected completion date is April $1,2026,$ just in time for the $2026$ baseball season. Costs incurred and estimated costs to complete at year$-$end for the life of the contract are as follows $(\backslash$$ in millions$)$:

Required:

$1.$ 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.

$2.$ 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.

$3.$ Suppose the estimated costs to complete at the end of $2025$ are $\backslash (\backslash$$ $210\backslash )$ million instead of $\backslash (\backslash$$ $140\backslash )$ million. Compute the amount of revenue and gross profit or loss to be recognized in $2025,$ assuming Sanderson recognizes revenue over time according to percentage of completion.

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $3$

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.

Note: Enter your answer in millions $($i$.$e$.,\backslash (\backslash$$ $4,000,000\backslash )$ should be entered as $\backslash (\backslash$$ $4\backslash )).$ Loss amounts should be indicated with a minus sign. Use percentages as calculated and rounded in the table below to arrive at your final answer. 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.

Note: Enter your answer in millions $($i$.$e$.,\backslash$$$4,000,000$ should be entered as $\backslash (\backslash$$ $4\backslash )).$ Loss amounts should be indicated with a minus sign. Use percentages as calculated and rounded in the table below to arrive at your final answer.

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$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{6\}\{|$c$|\}\{$Percentages of completion$\}\backslash \backslash$

$\backslash$hline $2024$ & & $\backslash (\backslash$div $\backslash )$ & & $\backslash (=\backslash )$ & $0\backslash \backslash$

$\backslash$hline $2025$ & & $\backslash (\backslash$div $\backslash )$ & & $\backslash (=\backslash )$ & $0\backslash \backslash$

$\backslash$hline $2026$ & & $\backslash (\backslash$div $\backslash )$ & & $=$ & $0\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{6\}\{|$c$|\}\{2024\}\backslash \backslash$

$\backslash$hline & To date & & Recognized in prior years & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$Recognized in $2024\}\backslash \backslash$

$\backslash$hline Construction revenue & & & & $\backslash$$ & $0\backslash \backslash$

$\backslash$hline Construction expense & & & & $\backslash$$ & $0\backslash \backslash$

$\backslash$hline Gross profit $($loss$)$ & & & & $\backslash$$ & $0\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{6\}\{|$c$|\}\{2025\}\backslash \backslash$

$\backslash$hline & To date & & Recognized in prior years & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$Recognized in $2025\}\backslash \backslash$

$\backslash$hline Construction revenue & & & & $\backslash$$ & $0\backslash \backslash$

$\backslash$hline Construction expense & & & & $\backslash$$ & $0\backslash \backslash$

$\backslash$hline Gross profit $($loss$)$ & & & & $\backslash$$ & $0\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{6\}\{|$c$|\}\{2026\}\backslash \backslash$

$\backslash$hline & To date & & Recognized in prior years & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$Recognized in $2026\}\backslash \backslash$

$\backslash$hline Construction revenue & & & & $\backslash$$ & $0\backslash \backslash$

$\backslash$hline Construction expense & & & & $\backslash$$ & $0\backslash \backslash$

$\backslash$hline Gross profit $($loss$)$ & & & & $\backslash$$ & $0\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $3$

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.

Note: Enter your answer in millions $($i$.$e$.,\backslash$$$4,000,000$ should be entered as $\backslash (\backslash$$ $4\backslash )).$ Loss amounts should be indicated with a minus sign. Leave no cells blank. Complete this question by entering your answers in the tabs below.

Required $2$

Required $3$

Suppose the estimated costs to complete at the end of $2025$ are $\backslash (\backslash$$ $210\backslash )$ million instead of $\backslash (\backslash$$ $140\backslash )$ million. Compute the amount of revenue and gross profit or loss to be recognized in $2025,$ assuming Sanderson recognizes revenue over time according to percentage of completion.

Note: Enter your answer in millions $($i$.$e$.,\backslash$$$4,000,000$ should be entered as $\backslash (\backslash$$ $4\backslash )).$ Use percentages as calculated and rounded in the table below to arrive at your final answer. Loss amounts should be indicated with a minus sign.

Show less $\backslash ($ A $\backslash )$

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{6\}\{|$c$|\}\{$Percentages of completion$\}\backslash \backslash$

$\backslash$hline & Choose numerator & $\backslash (\backslash$div $\backslash )$ & Choose denominator & $=$ & $\backslash \%$ complete to date $\backslash \backslash$

$\backslash$hline & & $\backslash (\backslash$div $\backslash )$ & & $\backslash (=\backslash )$ & $\backslash \backslash$

$\backslash$hline $2025$ & & $\backslash (\backslash$div $\backslash )$ & & $\backslash (=\backslash )$ & $0\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{6\}\{|$c$|\}\{2025\}\backslash \backslash$

$\backslash$hline & To date & & Recognized in prior Years & & Recognized in $2025\backslash \backslash$

$\backslash$hline Construction revenue & & & & $\backslash$$ & $0\backslash \backslash$

$\backslash$hline Construction expense & & & & $\backslash$$ & $0\backslash \backslash$

$\backslash$hline Gross profit $($loss$)$ & & & & $\backslash$$ & $0\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Required $2$

Required $3$