(1) Ireland Corporation obtained a $40,000 note receivable from a customer on June 30, 2018. The note, along with interest at 5%, is due on June 30, 2019. On September 30, 2018, Ireland discounted the note at Cloverdale bank. The bank's discount rate is 9%. What amount of cash did Ireland receive from Cloverdale Bank?

$37,165

$36,4000

$40,500

$39,165

(2) Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,900,000. The project was begun in 2017 and completed in 2018. Cost and other data are presented below:

	2017			2018
Costs incurred during the year	$	420,000		$	1,200,000
Estimated costs to complete		980,000			0
Billings during the year		450,000			1,450,000
Cash collections during the year		350,000			1,550,000
Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Compute the amount of gross profit recognized during 2017 and 2018. Part 2 of 2 Assume that Beavis recognizes revenue upon completion of the project. Required: Compute the amount of gross profit recognized during 2017 and 2018