4.) During 2022 Fat Cat Construction started a construction job with a contract price of $2,500,000. The job was completed in 2024. The following information is available.

	2022	2023	2024
Costs incurred to date	$600,000	$1,435,000	$2,100,000
Estimated costs to complete	1,400,000	615,000	-0-
Billings to date	100,000	500,000	2,500,000
Collections to date	100,000	300,000	2,000,000

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 journal entries for 2023.

(c) Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.