Problem 18-11 Your answer is partially correct. Try again. On July 1, 2020, Indigo Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,900,000. On July 1, Indigo estimated that it would take between 2 and 3 years to complete the building. On December 31, 2022, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Gumbel for 2020, 2021, and 2022. At At At 12/31/20 12/31/21 12/31/22 Contract costs incurred to date $315,000 $1,140,000 $2,096,200 Estimated costs to complete the contract 1,185,000 860,000 -0- Billings to Gumbel 290,000 1,110,000 1,840,000 (a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2020, 2021, and 2022. (Ignore income taxes.) (If answer is 0, please enter 0. Do not leave any field blank. If an amount should be deducted then enter the amount using either a negative sign prececeding the number e.g. -45 or parenthesis e.g. (45).) 2020 Costs to date 12/31/20) 315000 Estimated Costs to Complete 1185000 Estimated Total Costs 1500000 21 % | Percent Complete Revenue Recognized 399000 Costs Incurred -315000 Profit/ (Loss) Recognized in 2020 84000 2021 Costs to date (12/31/21) 1140000 Estimated Costs to Complete 860000 Estimated Total Costs 2000000 Contract Price 1900000 Total Profit/Loss -100000 I Total Profit/Loss (100000) Gross Profit Recognized in 2020 84000 Profit/ (Loss) Recognized in 2021 (16000) 2022 Costs to date (12/31/22) 20962001 T Estimated Costs to Complete 0 20962001 Contract Price 1900000 Total Profit/Loss (196200) Total Profit/Loss (196200) Profit/ (Loss) Recognized in 2021 (16000) Profit/ (Loss) Recognized in 2020 Profit/ (Loss) Recognized in 2022 (b) Using the completed-contract method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2020, 2021, and 2022. (Ignore income taxes.) (If answer is 0, please enter 0. Do not leave any fields blank. If an amount should be deducted then enter the amount using either a negative sign prececeding the number e.g. -45 or parenthesis e.g. (45).) 2021 Contract Price 1900000 Estimated Total Costs 2000000 Profit/ (Loss) Recognized in 2021 (100000) 2022 Contract Price 1900000 Costs Incurred Total Profit / (Loss) on Contract X Profit/ (Loss) Recognized in 2021 X Profit/ (Loss) Recognized in 2022