During 2016, Citation began construction of an office building for Altamont Corporation. The total contract price is $15 million. Costs incurred, estimated costs to complete at year-end, billings, and cash collections for the life of the contract are as follows:

	2016	2017	2018
Cost incurred during the year	3,000,000	7,125,000	3,375,000
Estimated costs to complete as of year-end	9,000,000	6,750,000
Billings during the year	1,500,000	7,000,000	6,500,000
Cash collections during the year	1,350,000	6,050,000	7,600,000

Citation uses the percentage-of-completion method for its office building contracts.

(a) Compute the amount of revenue and gross profit to be recognized in 2017, assuming the percentage-of-completion method is used.

(b) Prepare the journal entry to recognize revenue in 2017 under the percentage-of-completion method.

(c) Prepare a partial balance sheet for 12/31/2017, assuming the percentage-of-completion method is used.

(d) If Citation used the completed contract method, what would be the amount of revenue and gross profit to be recognized in 2017? Prepare the journal entry to recognize revenue.