Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9]

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[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:

202420252026Cost incurred during the year$ 2,072,000$ 2,738,000$ 2,849,000Estimated costs to complete as of year-end5,328,0002,590,0000Billings during the year2,160,0002,650,0005,190,000Cash collections during the year1,880,0002,700,0005,420,000

Westgate recognizes revenue over time according to percentage of completion.

Problem 6-10 (Algo) Part 5

5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following costs incurred and costs to complete information.

Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.

202420252026Costs incurred during the year$ 2,072,000$ 3,880,000$ 4,140,000Estimated costs to complete as of year-end5,328,0004,260,000

can someone help me with this? i cannot figure out how to calculate the gross profit.

Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 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 5 5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following costs incurred and costs to complete information. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign