Long-Term Construction Contract Osborn Construction Company began operations January 2, 2013. During the year, Osborn entered into a contract with Redbeard Razor Corporation to construct a manufacturing facility. At that time, Osborn estimated that it would take 5 years to complete the facility at a total cost of $4,800,000. The total contract price for construction of the facility is $6,000,000. During the year, Osborn incurred $1,250,000 in construction costs related to the construction project. The estimated cost to complete the contract is $3,750,000. Redbeard was billed and paid 30% of the contract price. If an amount is zero, enter zero. Required: 1. Compute the amount of gross profit to be recognized for the year ended December 31, 2013 under the completed-contract method. $ 0 Hide Prepare schedules to compute the amount of gross profit to be recognized for the year ended December 31, 2013, and the amount to be shown as "cost of uncompleted contract in excess of related billings" or "billings on uncompleted contract in excess of related costs" on December 31, 2013, under the following methods: 1. Completed-contract method Osborn Construction Company Billings in Excess of Related Costs December 31, 2013 Construction costs incurred during the year $ 1,250,000 Partial billings on contract 1,800,000 Billings on uncompleted contract in excess of related costs 55,000 Hide 2a. Percentage-of-completion method (Computation of Gross Profit) Osborn Construction Company Computation of Gross Profit to be Recognized December 31, 2013 Total contract price $ 1,250,000 Total estimated cost 3,750,000 Estimated total gross profit from contract $ 5,000,000 Percentage of completion 25 % Gross profit recognized during the year $ 1,000,000 Hide 2b. Percentage-of-completion method (Computation of Billings on Uncompleted Contract) Osborn Construction Company Billings in Excess of Related Costs December 31, 2013 Construction costs incurred during the year $ Gross profit recognized during the year Total charged to construction in progress $ Partial billings on contract Billings on uncompleted contract in excess of related costs $