Can someone please explain step-by-step how they got these answers for the percentage-of-completion method and the completed-contract method? I am having a difficult time figuring out how this was all calculated. Thank you so much!!!

Shanahan Construction Company has entered into a contract beginning January 1, 2014, to build a parking complex. It has been estimated that the complex will cost $600,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $900,000. The following data pertain to the construction period.

		2014		2015		2016
Costs to date		$270,000		$450,000		$610,000
Estimated costs to complete		330,000		150,000		0
Progress billings to date		270,000		550,000		900,000
Cash collected to date		240,000		500,000		900,000

(a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period.

Gross profit recognized in 2014: $ 135,000

Gross profit recognized in 2015: $ 90,000

Gross profit recognized in 2016: $ 65,000

(b) Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period.

Gross profit recognized in 2014: $ 0

Gross profit recognized in 2015: $ 0

Gross profit recognized in 2016: $ 290,000