Problem $6-10($Algo$)$ Long$-$term contract; revenue recognition over time $[$LO$6-8,6-9]$

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In $2024,$ the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $$10,000,000.$ The road was completed in $2026.$ Information related to the contract is as follows:

$202420252026$

Cost incurred during the year $ $2,610,000$ $ $3,162,000$ $ $2,230,800$

Estimated costs to complete as of year$-$end $6,390,0002,028,0000$

Billings during the year $2,100,0003,672,0004,228,000$

Cash collections during the year $1,850,0003,000,0005,150,000$

Westgate recognizes revenue over time according to percentage of completion.Required information

Problem $6-10($Algo$)$ Long$-$term contract; revenue recognition over time $[$L$06-8,6-9]$

$[$The following information applies to the questions displayed below.$]$

In $2024,$ the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for

$$10,000,000.$ The road was completed in $2026.$ Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

Problem $6-10($Algo$)$ Part $1$

Required:

Calculate the amount of revenue and gross profit $($loss$)$ to be recognized in each of the three years.

Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.