Citation Builders, Inc., builds office buildings and single-family homes. The office buildings are constru reputable buyers. The homes are constructed in developments ranging from 10-20 homes and are typically sold during con and single-family homes. The office buildings are constructed under contract with n completion, buyers must pay a deposit of 10% of the price of the home with the remaining f the house and transfer of title. Failure to pay the full amount results in forfeiture of the down payment. or soon after. To secure the home upo balance due upon completion of the house and transfer of t Occasionally, homes remain unsold for as long as three months after construction. In to promote the sale. these situations, sales price reductions are used During 2018, Citation began construction of an office building for Altamont Corporation. The total contract price is $21 million. Costs incurred, estimated costs to complete at year-end, billings, and cash collections for the life of the contract are as follows: 2018 2020 2019 Costs incurred during the year Estimated costs to complete as of year-end Billings during the year Cash eollections during the year s 4,200,000 9,975,0004,725, 000 8,400,000 9,110,000 10,000,000 12,600,000 2, 100,000 1,890,000 4,725,000 10,500,000 Also during 2018, Citation began a development consisting of 12 identical homes. Citation estimated that each home vill se $820,000, but individual sales prices are negotiated with buyers. Deposits were received for eight of for eight of the homes, three of which were 5,000 each to construct completed during 2018 and paid for in full for $820,000 each by the buyers. The completed homes cost $6 The construction costs incurred during 2018 for the nine uncompleted homes totaled $3,690,000 Required 1. Which method is most equivalent to recognizing revenue at the point of delivery? 2. Answer the following questions assuming that Citation uses the completed contract method for its office building contracts: 2-a. How much revenue related to this contract will Citation report in its 2018 and 2019 income statements? 2-b. What is the amount of gross profit or loss to be recognized for the Altamont contract during 2018 and 2019? 2-c. What wil ll Citation report in its December 31, 2018, balance sheet related to this contract? (lgnore cash.) 3. Answer the following questions 3-a. How much revenue related to this contract will Citation report in its 2018 and 2019 income statements? assuming that Citation uses the percentage-of-completion method for its office building contracts