McCombs Contractors received a contract to construct a mental health facility for $2,500,000. Construction was begun in 2020 and completed in 2021. Cost and other data are presented below: In 2020: Cost incurred during the year is $1,500,000; Estimated cost to complete is $1,300,000 In 2021: Cost incurred during the year is $1,200,000; Estimated cost to complete is $0. Assume that McCombs recognizes revenue on this contract over time according to percentage of completion. How much is gross profit(loss) recognized during 2021

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.