2. The board of directors of Erin Construction Company is meeting to choose between the completed-contract method and the percentage of completion method of accounting for long-term contracts in the company's financial statements. You have been engaged to assist Erin's controller in the preparation of a presentation to be given at the board meeting. The controller provides you with the following information: i. Erin began doing business on January 1, 2021. ii. Construction activities for the year ended December 31, 2021 were as follows: Contract Costs Incurred Total Contract Billings Cash Collections Project Price Through 12/31/2021 through 12/31/2021 Through 12/31/2021 Estimated Additional Costs to Complete ABCD $505,000 $240,000 $210,000 $274,000 $106,000 920,000 660,000 620,000 675,000 270,000 375,000 375,000 350,000 320,000 0 480,000 400,000 310,000 270,000 80,000 iii. Each contract is with a different customer. iv. Any work remaining to be done on the contracts is expected to be completed in 2022. Required: a. Compute the percentage complete for each of the four projects. b. C. d. Compute the amount of gross profit to be recognized for each project assuming percentage of completion method. Calculate Construction in Progress for each of the incomplete projects at the end of 2021. Show how Billings and Construction in Process would appear on the balance sheet for the three incomplete projects at the end of the year.