Hometown Construction Corp . entered into a long-term contract to build an officebuilding for Outsider Corp . at a fixed contract price of $27 5 million on 6 / 15/2016Construction of the building is completed on 1215/ 2018 . Hometown Constructionexpects the building to be completed in two and , a half years and uses the Percentage ofCompletion Method ( cost to cost appt each ) to account for the contract . Cost informationrelated to the contract are as follows201620172018Actual Construction costs incurredduring year4.500.00012 075.0009. 425. 000Estimated costs to complete at 1213120.500.0008. 925 000Determine the amount of Gross Profit that would be recognized each year underPercentage of Completion