E18-33 (LO5,6) (Recognition of Profit on Long-Term Contracts) During 2017, Nilsen Company started a construction job with a contract price of $1,600,000. The job was completed in 2019. The following information is available. 2018 2019 $1,070,000 Costs incurred to date Estimated costs to complete Billings to date Collections to date 2017 $400,000 600,000 300,000 270,000 $825,000 275,000 900,000 810,000 1,600,000 1.425,000 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 2018. (c) Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used