On July 1, 2025, Torvill Construction Company Inc. contracted to build an office building for Gumbel Corp. On July 1, Torvill estimated that it would take between 2 and 3 years to complete the building. On December 31, 2027, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Gumbel for 2025, 2026, and 2027. NOTE: The company's fiscal year aligns with the calendar year. The phrase "to date" that is used in the contract details below, as well as in the answer table, means up to the present time. Pay attention to the unare that you're working with! Total contract price $ 2,400,000 At 12/31/25 Contract costs incurred to date $ Estimated costs to complete the contrac Progress Billings to Gumbel during year 300,000 1,200,000 At 12/31/26 At 12/31/27 $1,220,000 $2,150,000 800,000 300,000 1,100,000 800,000 Instructions a. b. Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2025, 2026, and 2027. (Ignore income taxes.) Using the cost recovery method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2025, 2026, and 2027. (Ignore income taxes.) Record Your Answers Here: Estimated Percent Revenue Complete To Recognized Revenue Recognized Gross Profit Recognized in Current Costs Incurred in Current a. Date 12/31/2025 Total Costs Date To Date Year To Date Year 12/31/2026 12/31/2027 Costs Incurred In Costs Incurred To Recognized In Current Revenue Revenue Recognized Gross Profit b Date Current Year Date Year To Date To Date 12/31/2025 12/31/2026 12/31/2027 Gross Profit Recognized in Current Year 1. Schedules are completed in totality for each year, with a profit/loss amount calculated for each year (7 points). 2. Appropriate use of Excel - Use of cell references for amounts if given in the problem data and use of formulas for all calculations (3 points).