close or the yeal. the Partidi he items ordered.) Must HIJ report any of the $60,000 as income thIs year year it contracted with the city of Old York to build a new performing arts center for a price of $5,000,000. Estimated total costs of the project were $4,000,000. Annual costs incurred were as follows: 5-35 Percentage of Completion. THZ Corporation is a large construction company. This $2,000,000 500,000 2019... 2020 2021 Total ..$3,500,000 What method(s) of accounting may the corporation use to report income from the project? How much income would be reported each year under the percentage of comple- tion method? Would any interest be due to (or from) the IRS as a result of this contract? If so. compute for the first year only, assuming the taxpayer is in the 34% tax bracket and the interest rate is 10 percent. a. b. c