On March 1, 2012, Avengers Construction Company contracted to construct a factory building for Marvel Manufacturing Inc. for a total contract price of $6,500,000. The building was completed by October 31, 2014. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Marvel for 2012, 2013, and 2014 are given below.

a. Assume Marvel uses the percentage of completion method.
b. Assume Avengers uses the completed contractmethod.

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At At At 2014 2012 2013 contract price Contract costs incurred to date Estimated costs to complete the contract at12 31S 4.500,000 S1,968,000S Billings to Pie during the year Collections from Pie during the year S 1,750,000 S2.432,000 S 1,825,000 S 1,950,000 S3,050,000 S 1,500,000 S1.400,000 S2,085,000 S 3,015,000