During 2017, Tamarisk Company started a construction job with a contract price of $1,580,000. The job was completed in 2019. The following information is available.

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

Prepare all necessary journal entries for 2018.

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

2017 2018 2019 Costs incurred to date Estimated costs to complete Billings to date Collections to date $366,300 $802,270 $1,080,000 623,700 296,730 297,000 906,000 270,000 802,000 1,580,000 1,427,000