Question - Pedone construction company began work on a contract in 2016. The contract price is $2,000,000, and the company determined that its performance obligation was satisfied over time. Other information relating to the contract is as follows:
costs incurred during 2016 $500,000 and $600,000 in 2017
estimated costs to complete, December 31 1,300,000 in 2016 and 1,100,000 in 2017
billings during the year are 400,000 in 2016 and 750,000 in 2017
Required - Compute the gross profit or loss recognition in 2016 and 2017.