On March 1, 2014, Chance Company entered into a contract to build an apartment building. It is estimated that the building will cost $2,156,000 and will take 3 years to complete. The contract price was $3,125,000. The following information pertains to the construction period.

	2014	2015	2016
Cost to date	$754,600	$1,584,830	$2,059,000
Estimated costs to complete	1,401,400	586,170	-0-
Progres billings to date	821,000	1,819,000	3,125,000
cash collected	779,000	1,672,000	2,979,000

A.

	Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used Gross profit recognized in 2014 Gross profit recognized in 2015 Gross profit recognized in 2016 B. Prepare all necessary journal entires for 2016 C. Prepare a partial balance sheet for December 31, 2015, showing the balances in the receivables and inventory accounts.