LT Construction Contract: Use the following data for problems #$11-12$

The Hi$-$End Construction Company entered into contracts for two separate projects as follows:

The $$Project AA$-01$ contract price was $$3,000,000$ and provided for penalties of $$50,000$ per week for late completion. Project AA$-01$ was completed during Year $2,$ but the project was four weeks late at completion.

The $$Project BB$-02$ contract price was $$4,000,000.$ Change orders during year $2$ added $$150,000$ to the original contract price. Also, in year $2,$ the estimated total cost was revised upward by $$400,000($i$.$e$.$ the estimated of total cost was increased$)$

Note: Project AA$-01$ was completed at end of Year $2$ while ProjectBB$-02$ was still on$-$going at end of Yr$.2.$

The percentage$-$of$-$completion method is used for financial reporting purposes. The following data pertains to the separate long$-$term construction projects in progress:

Project AA$-01$ Project BB$-02$

As of December $31,$ Year $1$

Cost Incurred to Date $$1,800,000$ $$2,050,000$

Estimated Cost to Complete $$200,000$ $$2,050,000$

Billings $$1,575,000$ $$2,200,000$

Cash Collections $$1,375,000$ $$1,825,000$

As of December $31,$ Year $2$

Cost Incurred to Date $$2,250,000$ $$3,600,000$

Estimated Cost to Complete $$0$ $$900,000$

Billings $$2,800,000$ $$3,550,000$

Cash Collections $$2,800,000$ $$3,125,000$

Required: Calculate the Gross Profit$/($Loss$)$ recognized for Year $1$ & Year $2.$