The following data relate to Merit Construction Company's long-term construction projects for the year 1999:

General and administrative expenses incurred in 1999 amounted to \(\$ 2\) million, none of which is to be considered a construction cost.

a. Compute net income for 1999 under the completed-contract method.
Compute income under completed-contract and percentage-of-completion methods (L.O. 2 \section*{Required}

a. Compute net income for 1999 under the completed-contract method.

b. Compute net income for 1999 under the percentage-of-completion method.

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Contract price. Costs incurred prior to 1999 Costs incurred in 1999 Estimated costs to be incurred in future years. Completed Incomplete Projects Projects $20,000,000 $100,000,000 3,700,000 16,000,000 11,100,000 32,000,000 -0- 32,000,000