American Construction Company has entered into a contract with American University in Cairo beginning January 1, 2017, to construct Digital Library 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 percentage of completion 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 2017 $1,890,000 2.310.000 1,800,000 1,600,000 2018 $3,150,000 1,050,000 3,940,000 3.500.000 2019 $4,270,000 -0 6,530,000 6,530,000 Requirements: Required 1: Compute the revenue and gross profit or loss recognized in the years 2017, 2018 and 2019. Required 2: Prepare all necessary journal entries for the year 2018: Required 3: The effect of this contract on the balance sheet on December 31, 2018. Required 4: Assume the same data for the digital library contract except that the estimated cost in 2018 was $2,100,000 instead of $1,050,000. Compute gross profit or loss recognized in 2018, and the balance of construction in process account on December 13, 2018.