Thompson Construction Began a Construction Project in 2016

Essay

Thompson Construction began a construction project in 2016. The contract price was $1,250,000, and the estimated costs were $1,000,000. Data for each year of the contract are as follows:
Required:
Assuming Thompson satisfies its performance obligation over time, determine: 1) The balance of Construction in Progress at the end of 2016.
2) How the net amount for construction in progress inventory should be reported on the
2017 balance sheet.
3) The gross profit for 2018.