Exercise 18-33 (Recognition of Profit on Long-Term Contract) During 2019, Nelson Company started a construction job with a contract price of $1,600,000. The job was completed in 2021. The following information is available: 2019 2020 2021 Contract cost incurred to date $400,000 $825,000 $1,070,000 Estimated costs to complete 600,000 275,000 Billings to date 300,000 900,000 1,600,000 Collections to date 270,000 810,000 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 2020. (c) Compute the amount of gross profit to be recognized each year, assuming the cost- recovery method is used