At the beginning of 2018 Forge Yachts enters into a contract to build a luxury yacht for a customer that is expected to take three years to complete. The contract price is $4,000,000. Completion is scheduled for the end of 2020. Forge's year end is December 31. The following is a year by year summary of construction costs incurred and the estimated costs to complete the projects at the end of each year. 2018 2019 2020 Actual costs incurred current year $750,000 $2,250,000 $775,000 actual costs incurred prior years -0- 750,000 3,000,000 Cumulative actual costs incurred to date 750,000 3,000,000 3,775,000 Estimated costs to complete end of year 2,250,000 750,000 -0- Total Costs $3,000,000 $3,750,000 $3,775,000 Total Costs $3,000,000 $3,750,000 $3,775,000 Billings $700,000 $2,600,000 $700,000 Cash Collections 500,000 2,000,000 1,500,000 Assuming the company uses the percentage-of-completion method, compute the gross profit for 2018 & 2019. Prepare all necessary entries (in proper form) for only 2018. Note, you must record all necessary journal entries to receive full credit