Wildhorse Construction Company has entered into a contract beginning January 1, 2025, to build a parking complex. It has been estimated that the complex will cost $595,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $903,000. The following data pertain to the construction period.
2025
2026
2027
Costs to date
$279,650
$487,900
$606,000
Estimated costs to complete
$315,350
$107,100
$0
Progress billings to date
$272,000
$545,000
$903,000
Cash collected to date
$242,000
$495,000
$903,000
Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If the answer is 0, please enter 0. Do not leave any fields blank.)
Gross profit recognized in 2025:
$enter a dollar amount
Gross profit recognized in 2026:
$enter a dollar amount
Gross profit recognized in 2027:
$enter a dollar amount