In 2021, the Westgate Construction Company entered into a contract to construct a bridge for $12,000,000.

The bridge was completed in 2023. Information related to the contract is as follows:

2021 2022 2023 Cost incurred during the year $1,840,000 $3,760,000 $4,500,000 Estimated costs to complete as of year-end $6,160,000 $5,600,000 $0 Billings during the year $3,000,000 $4,000,000 $5,000,000 Cash collections during thee year $2,600,000 $3,900,000 $5,100,000

a. Westgate recognizes revenue over time according to percentage of completion. What gross profit (loss) will Westgate record on the contract for 2022?

b. Westgate recognizes revenue using the completed contract method. What amount will Westgate show on the balance sheet at December 31, 2022?