For this problem, do not include dollar signs or percentage…
For this problem, do not include dollar signs or percentage signs. In 2017, Bubbles Inc. began a long-term construction contract with a contract price of $1,000,000. The contract is to start on January 2017 and the construction project is to be completed in December 2019. Pertinent information is as follows: (a) Assume Bubbles uses the percentage-of-completion method. Complete the following chart calculating the gross profit recognized in each year by Bubbles Inc. 2017 2018 2019 Estimated total costs Estimated percent complete (%) Revenue recognizable to date Revenue recognized currently Cost incurred currently Gross profit recognized (b) Assume Bubbles uses the completed contract method. What amount does Bubbles report as construction expenses (cost incurred currently) (if any) for 2017? (c) Assume Bubbles uses the completed contract method. What amount does Bubbles report as loss on construction contract (if any) for 2018?