On March 1, 2019, Pechstein Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,400,000. The building was completed by November 30, 2021. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2019, 2020 and 2021 are given below. 2019 2020 2021 Contract costs incurred during the year $2,880,000 $2,595,000 $1,825,000 Estimated costs to complete the contract at 12/31 3,520,000 1,825,000 -0- Billings to Fabrik during the year 3,200,000 4,000,000 1,200,000 Cash collected during the year 2,500,000 4,000,000 1,900,000 Instructions a. Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract and all the necessary journal entries for the years ended December 31, 2019, 2020, and 2021. b. Using the cost-recovery method, prepare schedules to compute the profit or loss to be recognized as a result of this contract all the necessary journal entries to record the costs, expenses and revenue for the years ended December 31, 2019, 2020, and 2021. (Journal entries for billings and collection are not required.)