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 $3,077,500. Jebali finished construction in 2018 at a cost of $2,769,750 However, Samson insisted that Jebali redo the doorway; otherwise, the contract price would be reduced. The estimated cost of redoing doorway is $139,550. In 2019, the dispute is settled and Jebali fixed the doorway at a cost of $111,640. a. How much must Jebali indude in gross income? What amount of deductions is Jebali allowed for 2018? Jebali must includes in gross income and is allowed deductions of $ for 2018 b. In 2019, how much must Jebali include in gross income? What amount of expenses can Jebali deduct in that year? In 2019, Jebali must includes gross income and may deduct $ as expenses in that year