Problem: Project Contracts- Sanderson Construction
Task:
• Determine the amount of gross profit or loss to be recognized in each of the three years using the percentage- of-completion method.
• How much revenue will Sanderson report in its 2011 and 2012 income statements related to this contract using the percentage-of-completion method?
• Determine the amount of gross profit or loss to be recognized in each of the three years using the completed contract method.
• Determine the amount of revenue, cost, and gross profit or loss to be recognized in each of the three years under IFRS, assuming that using the percentage-of-completion method is not appropriate.
• Suppose the estimated costs to complete at the end of 2012 are $80 million instead of $60 million. Determine the amount of gross profit or loss to be recognized in 2012 using the percentage-of-completion method.
The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.