Orange corporation has budgeted sales of 16,000 units, targeted ending finished

Recognized $3.75 million loss on the project in 2017.

Explanation:

Calculation for what Indiana Co. Recognized

First step is to calculate the Percentage of contract is completed in 2019

Percentage of contract is completed in 2019=($33 million+$66 million )/($33 million+$66 million + $53 million)

Percentage of contract is completed in 2019=$96 million/$149 million

Percentage of contract is completed in 2019=0.64429*100

Percentage of contract is completed in 2019=64.43%

Second step is to calculate The estimated gross profit

Estimated gross profit=$161 million-$149 million

Estimated gross profit=$12 million

Fourth step is to calculate gross profit to date

Gross profit to date=64.43%*161=103.7

gross profit to date=33 million / (33 + 89 million) * 161 million

gross profit to date=33 million/122 million* 161 million

gross profit to date=43.54

= $44.01 million in revenue in 2021 (4)

Now let calculate the amount recognized