Cushing Corporation recently received a long-term contract to c contract will take 3 years to complete at a cost of $3,500,000. The $5,000,000. The cost estimates at the end of the first year are in line with o the lher $1,050,000 of the costs were incurred during the first year construct a luxury liner &e liner is set at following information relates to questions 19 and 20 . The of the liner is set a at the end of the first year using the 19. (L.O. 5) The amount of gross profit recognized at the of-completion method is: A. $1,500,000. B. $1,050,000 C. $ 735,000 D. $ 450,000. 20 0. 5) At the end of the first year which of the following entries would be made to recognize revenue and gross profit on the contract? Revenue from Long-Term Contracts Revenue from Long-Term Contracts A. Accounts Receivable-Construction Contracts B. Billings on Construction in Process C. Construction in Process Construction Expenses Revenue from Long-Term Contracts D. Billings on Contraction in Process Construction in Process The following information relates to questions 21 and 22. Bretts Construction Company had a contract starting April 2017, to construct a $6,000,00o building that is expected to be completed in September 2018, at an estimated cost of $5,500,000. At the end of 2017, the costs to date were $2,530,000 and the estimated total costs to complete had not changed. The progress illings during 2017 were $1,200,000 and the cash collected during 2017 was $800,000. 21. (LO. 5) For the year ended December 31, 2017, Bretts would recogniz on the building of: would recognize gross profit A. $210,833. B. $230,000 C. $270,000. 22.(L0.5) At December 31, 2017, Bretts would report Construction in Process in the amount of A. 230,000 B. $2,530,000 C. $2,760,000 D. $2,360,000