On April 1, 2014, Pinkett Construction Company obtained a contract to build an museum. The museum was to be built at a total cost of $30,000,000 and was scheduled for completion by November 1, 2016. One clause of the contract stated that Pinkett was to deduct $25,000 from the $40,000,000 billing price for each week that completion was delayed. Completion was delayed 4 weeks, which resulted in a $100,000 penalty. Below are the data pertaining to the construction period. Instructions (a) Using the percentage-of-completion method, compute the estimated gross profit recognized in the years 2014-2016. (b) Prepare a partial balance sheet for December 31, 2015, showing the balances in the receivables and inventory accounts.

	2014	2015	2016
costs to date	4,500,000	12,500,000	32,000,000
Estimated costs to complete	25,500,000	18,750,000	0
progress billings to date	6,200,000	15,800,000	39,900,000
cash collected to date	5,000,000	15,000,000	39,900,000