On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D. C., for $220 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): 2018 2019 2020 Costs incurred during the year $ 40 $ 80 $ 50 Estimated costs to complete as of December 31 120 60 — Required: 1. Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion. 2. Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming this project does not qualify for revenue recognition over time. 3. Suppose the estimated costs to complete at the end of 2019 are $80 million instead of $60 million. Compute the amount of revenue and gross profit or loss to be recognized in 2019 using the percentage of completion method.

The solution to the problem is given below.

Explanation:

Requirement 1

Revenue recognition:

2018: = 25% * $220 = $55

2019: = (66.67%  ×  $220) – $55 = $91.67

2020: $220 – ($55 + $91.67) = $73.33

Gross profit (loss) recognition:

2018: $55 – 40 = $15

2019: $91.67 – 80 = $11.67

2020: $73.33 – 50 = $23.33

Requirement 2

Year                      Revenue recognizedGross profit (loss) recognized

2018                                         0                                      0

2019                                   0                                      0

2020                               $220                                $50

Requirement 3

2019 Revenue recognition:

= (60%  ×  $220) – $55 =  $77

2019 Gross profit (loss) recognition using the percentage of completion:  

= 60%  ×  $20* = $12 – 15 = $(3) loss

the answer is b. the events might happen and are based on crimes.

the correct answer is:

it required the president to inform congress within forty-eight hours of any new troop commitment.

the war powers resolution (1973) is a federal law designed to limit the u.s. president’s ability to initiate or intensify military actions abroad without the approval of the congress.

it establishes that the president can send armed forces into action abroad only by declaration of war by congress, statutory authorization, or in case of a national emergency created by attack upon the united states, its territories or possessions, or its armed forces.

it requires the president to notify congress within 48 hours of sending armed forces to military action.