3 E16-17 (Recognition of Profit on Long-Term Contracts) During 2012. Nilsen Company started a con- job with a contract price of S1,600,000. The job was completed in 2014. The following information is available Costs incurred to date Estimated costs to complete Bilings to date Collections to date 2012 $400,000 600.000 300.000 270,000 2013 $325,000 275.000 300,000 810,000 2014 $1.070,000 -0 1,000,000 1.425,000 Instructions (a) Compute the amount of gross profit to be recognized each year, assuming the percentage of completion method is used b) Prepare all necessary umal entries for 2013 el Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used