(a) How much revenue and income on the contract would be reported for each year assuming Percentage-of-completion method? (Must show calculations):

(b) How much revenue and income on the contract would be reported for each year assuming Completed contract method? (Must show calculations):

c) Assume that in year 2019 everything is the same except the costs to complete at 12/31/19 are $3,800,000. What would be the new income for 2019 only and using Percentage-of-completion method? (Must show calculations):

DunnEllis began work on a government contract at the start of 2019. The contract is to construct a small apartment complex for $5,000,000. Initial construction costs were estimated to be $4,000,000. Information during the construction period was: 2019 2020 Costs incurred this year $1,600,000 $2,550,000 Estimated cost to complete as of 12/31/19 2,400,000 -0- Billings to the government during the year 1,720,000 3,280,000 Cash collected during the year 1,500,000 3,500,000