The following data pertain to Pell Company’s construction jobs, which commenced during 2008:

Required:
1. If Pell used the completed-contract method, what amount of gross profit (loss) would it report in its 2008 income statement?
2. If Pell used the percentage-of-completion method, what amount of gross profit (loss)
would it report in its 2008 income statement?

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Project I Project 2 Contract price $420,000 $300,000 Costs incurred during 2008 240,000 280,000 Estimated cost to complete 120,000 40,000 Billed to customers during 2008 150,000 270,000 Received from customers during 2008 90,000 250,000