*E6.40 (LO 15) (Recognition of Profit on Long-Term Contract-Overall Loss) Assume the facts given in E6.38, except assume that Vaughn's non-cancellable fixed-price contract with Atlantis is for $9.5 million. Billings and collections are lower in 2025 by $500,000 each. 2023 2024 2025 Costs for the year $3,825 $4,675 $1,200 Estimated costs to complete 4,675 1,270 -0- Progress billings for the year (non-refundable) 3,500 4,100 1,900 Cash collected for the year 3,100 4,150 2,250 Instructions a. Using the percentage-of-completion method, calculate the percentage complete for 2023 and 2024. Round the percentage complete to the nearest whole percentage point. b. Calculate the amount of revenue to be recognized in 2023 and 2024. c. Calculate the construction costs to be expensed in 2024. d. Prepare the journal entry at December 31, 2024, to record long-term contract revenues, expenses. and losses for 2024. e. What is the balance in the Contract Asset/Liability account at December 31, 2023 and 2024? f. Show how the construction contract would be reported on the SFP and the income statement for the year ended December 31, 2024. 8. Assume that Vaughn uses the zero-profit or completed-contract method. What would be the journal entry recorded on December 31, 2024