Jebali Corporation, a calendar year taxpayer utilizing the completed contract method of accounting, constructed a building for Samson, Inc., under a long$-$term contract. The gross contract price was $$3,534,000.$ Jebali finished construction in $2023$ at a cost of $$3,180,600.$ However, Samson insisted that Jebali redo the doorway; otherwise, the contract price would be reduced. The estimated cost of redoing the doorway is $$148,250.$ In $2024,$ the dispute is settled and Jebali fixed the doorway at a cost of $$118,600.$

a$.$ How much must Jebali include in gross income for these items? What amount of deductions is Jebali allowed for $2023?$

Jebali must include $fill in the blank $1$

in gross income and is allowed deductions of $fill in the blank $2$

for $2023.$

b$.$ In $2024,$ how much must Jebali include in gross income? What expenses can Jebali deduct in that year?

In $2024,$ Jebali must include $fill in the blank $3$

in gross income and may deduct $fill in the blank $4$

as expense in that year.