On june 15, 2018, sanderson construction entered into a long-term construction contract to build a baseball stadium in washington, d. c., for $270 million. the expected completion date is april 1, 2020, just in time for the 2020 baseball season. costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): 2018 2019 2020costs incurred during the year $ 50 $ 100 $ 60 estimated costs to complete as of december 31 150 90 — 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 $100 million instead of $90 million. compute the amount of revenue and gross profit or loss to be recognized in 2019 using the percentage of completion method. percentages of completionchoose numerator ÷ choose denominator = % complete to dateactual costs to date estimated total costs 2018 $50 ÷ $200 = 25.00%2019 $150 ÷ $240 = 62.50%2020 100.00%2018to date recognized in prior years recognized in 2018construction revenue $67 $0 $67construction expense $50 $0 $50gross profit (loss) $17 $0 $172019to date recognized in prior years recognized in 2019construction revenue $169 $67 $102construction expense $150 $50 $100gross profit (loss) $19 $17 $22020to date recognized in prior years recognized in 2020construction revenue $270 $169 $101construction expense $210 $150 $60gross profit (loss) $60 $19 $41year revenue recognized gross profit (loss) recognized2018 $67 million $17 million2019 $102 million $2 million2020 $101 million $41 millionpercentages of completionchoose numerator ÷ choose denominator = % complete to dateactual costs to date estimated total costs 2019 $150 ÷ $250 = 60.00%2019to date recognized in prior years recognized in 2019construction revenue $160 $67 $93construction expense $152 $50 $102gross profit (loss) $12 $17 $(5)requirement 2 and every red cell and in bold is incorrect, everything else is right. as fast as you can.