I'd like some help, and explanation on a homework question.
Daisy Construction Ltd. has entered into a contract beginning January 1, 2014, to build a parking complex. It has estimated that the complex will cost 8 million and will take 3 years to construct
The complex will be billed to the purchasing company at $11.0 million. Details are as follows:
2014 2015 2016
Costs to date $3,060,000 $6,435,000 $8,450,000
Estimated costs to complete 4,595,400 1,879,565 -0
Progress billings to date 4,000,400 6,300,000 11,000,000
Cash collected to date 3,500,400 5,000,000 11,000,000
Under the earnings approach: using the percentage-of-completion method, calculate the estimated gross profit that would be recognized during each year of the construction period. (Round percent complete to 2 decimal places)