e Required informationProblem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9][The following information applies to the questions displayed below.]In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for$10,000,000. The road was completed in 2026. Information related to the contract is as follows:Problem 6-10 (Algo) Part 1Cost incurred during the yearEstimated costs to complete as of year-endBillings during the yearCash collections during the yearWestgate recognizes revenue over time according to percentage of completion.RevenueGross profit (loss)$$Required:1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.20242,800,000 $616,000 $20252024$ 2,184,0005,616,0002,120,0001,860,0004,500,000 $990,000 $20262025$ 3,510,0002,106,0003,574,0003,400,0002,700,000-4,983,4002026$ 2,316,60004,306,0004,740,000

It is a method used for computing the revenue to be recognized in the current year and the revenue…

Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. Revenue Gross profit (loss) $ $ 2024 2,800,000 $ 616,000 $ 2025 4,500,000 $ 990,000 $ 2026 2,700,000 -4,983,400