E18.33 (LO5, 6) (Recognition of Profit on Long-Term Contracts) During 2019, Nilsen Company started a construction job with a contract price of $1,600,000. The job was completed in 2021. The following information is available. Costs incurred to date 2019 2020 2021 $400,000 $825,000 $1,070,000 Estimated costs to complete Billings to date 600,000 275,000 -0- 300,000 900,000 1,600,000 270,000 810,000 1,425,000 Collections to date Instructions a. Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. b. Prepare all necessary journal entries for 2020. c. Compute the amount of gross profit to be recognized each year, assuming the cost-recovery method is used.