申論題

四、On July 1, 2019, Torvill Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,900,000. On July 1, Torvill estimated that it would take between 2 and 3 years to complete the building. On December 31, 2021, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Gumbel for 2019, 2020, and 2021.  At 12/31/19 At 12/31/20 At 12/31/21 Contract costs incurred to date $ 300,000 $1,200,000 $2,100,000 Estimated costs to complete contract 1,200,000 800,000 -0- Billings to Gumbel 300,000 1,100,000 1,850,000 Instructions (12%) Using the percentage-of-completion method, compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2019, 2020, and 2021. (Ignore income taxes.)