6 points Save Actione Arab Construction Company has entered into a contract with University of Bahrain beginning January 1, 2017 to construct medical college building. It has been estimated that the costs of the building to be $4,200,000 and the contract price will be $6,530,000. It will take 3 years to construct the building. The company uses cost recovery method. If the following data pertain to the building during the construction period. Costs to date Estimated costs to complete Progress billings to date Cash collected to date Requirements: 2017 2018 2019 $1,890,000 $3,150,000 $4,270,000 1,050,000 3,940,000 6,530,000 -0- 2.310,000 1,800,000 1,600,000 3,500,000 6,530,000 Required 1: Compute the gross profit of loss recognized each year. Required 2: The balance of construction in process in 2017 and 2018 will be: Required 3: Assume the same data for the medical college contract except that the estimated cost in 2018 was $2,100,000 instead of $1,050,000. A. Compute the gross profit or loss recognized in 2018. B. Provide explanation for you answer? Activate Windows Required 4: Assume the same data for the medical college contract except that the estimated cost in 2018 was $4,200,000 instead of $1,050,000 and the cost to date in 2019 was $7,350,000 instead of $4,270,000. A. Compute the gross profit or loss recognized in 2017 and 2018 B. Prepare the journal entry to recognize the loss (if any) in 2018