Jackson Construction specializes in the construction of commercial and industrial buildings. The contractor uses the percentage-of-completion method of revenue recognition since, given the characteristics of the contractor's business and contracts, it is the most appropriate method. Progress toward completion is measured on a cost-to-cost basis. Jackson began work on a lump-sum contract at the beginning of 2021. As bid, the statistics were as follows: Lump-sum price (contract price) 12,000,000 Estimated costs: Labor 2,550,000 Materials and subcontractor 5,250,000 Indirect costs 1,200,000 9,000,000 3,000,000 At the end of the first year, the following was the status of the contract: Billings to date 5,750,000 Costs incurred to date: Labor 1,392,000 Materials and subcontractor 1,944,000 Indirect costs 579,000 3,915,000 Latest forecast total cost 9,000,000 It should be noted that included in the above costs incurred to date were standard electrical and mechanical materials stored on the job site, but not yet installed, costing $415,000. These costs should not be considered in the costs incurred to date. Required: (a) Compute the percentage of completion on the contract at the end of 2021. (b) Indicate the amount of gross profit that would be reported on this contract at the end of 2021. (c) Make the journal entry to record the income (loss) for 2021 on Jackson's books. (d) Indicate the account(s) and the amount(s) that would be shown on the balance sheet of Jackson Construction at the end of 2021 related to its construction accounts. Also indicate where these items would be classified on the balance sheet. Billings collected during the year amounted to $5,200,000. (e) Assume the latest forecast on total costs at the end of 2021 was $12,120,000. How much income (loss) would Jackson report for the year 2021?

Only need (e) answered