Arab Construction Company has entered a contract with University of Bahrain beginning January 1, 2018, to construct medical college building. It has been estimated that the costs of the building to be $8 million and the contract price will be $12 million. 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 incurred to date Estimated costs to complete Progress billings to date Cash collected to date Requirements: 2018 $3,600,000 2019 $6,750,000 2020 $9,000,000 4,400,000 2,250,000 -0- 4,000,000 8,000,000 12,000,000 3,000,000 6,000,000 12,000,000 Required 1: Compute the gross profit or loss recognized in the years 2018, 2019 and 2020. Required 2: Assume the same data for the medical college contract except that the estimated cost in 2019 was $4,500,000 instead of $2,250,000 and the cost to date in 2020 was $11,250,000 instead of $9,000,000. A. Compute the gross profit or loss recognized in 2019. B. Provide explanation for you answer? Required 3: Assume the same data for the medical college contract except that the estimated cost in 2019 was $6,750,000 instead of $2,250,000 and the cost to date in 2020 was $13,500,000 instead of $9,000,000. A. Compute the gross profit or loss recognized in 2018 and 2019. B. Prepare the journal entry to recognize the loss (if any) in 2019