Question

On june 15, 2018, sanderson construction entered into a long-term construction contract to build a baseball stadium in washington,
d.c., for $410 million. the expected completion date is april 1, 2020, just in time for the 2020 baseball season. costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions):

Answer 1

Answer:

The answer is $15000000.

Explanation:

Gross profit in 2016 is $60000000, 2017 is $40000000 and 2018 is $50000000.

Calculation of 2016 is = Estimated gross profit x (actual cost to date ÷ total cost)

                                   = $60000000 x ($40000000 ÷ $ 160000000)

                                    = $15000000

The method remains same to calculate the gross of every year.