Exercise 18A-30Yanmei Construction Company began operations on January 1, 2014. During the year, YanmeiConstruction entered into a contract with Lundquist Corp. to construct a manufacturing facility.At that time, Yanmei estimated that it would take 5 years to complete the facility at a total cost of$4,770,000. The total contract price for construction of the facility is $6,360,000. During theyear, Yanmei incurred $1,256,948 in construction costs related to the construction project. Theestimated cost to complete the contract is $4,456,452. Lundquist Corp. was billed and paid 25%of the contract price.Prepare schedules to compute the amount of gross profit to be recognized for the year endedDecember 31, 2014, and the amount to be shown as "costs and recognized profit in excess ofbillings" or "billings in excess of costs and recognized profit" at December 31, 2014, under eachof the following methods. (Round answers to 0 decimal places, e.g. 5,275.)(a)(b)Completed-Percentage-of-contractcompletionmethodmethodGross profit recognized$Billings in excess of costs and recognized$profit