On June 15, 2011, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington D.C. for $215 million. The expected completion date is April 1 of 2013, just in time for the 2013 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions):
2011 |
2012 |
2013 |
| Costs incurred during the year |
$ |
40 |
|
$ |
80 |
|
$ |
50 |
|
| Estimated costs to complete as of 12/31 |
|
120 |
|
|
60 |
|
|
- |
Determine the amount of gross profit or loss to be recognized in each of the three years using the percentage-of-completion method.