During 2014, Nilsen Company started a construction job with a contract price of $1,600,000. The job was completed in 2016. The following information is available.

1. Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.

2. Prepare all necessary journal entries for 2015

3. Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.