On May 1, 2020, Jackson Construction Company contracted to constructa factory building for a total contract price of $9,600,000. The building was completed by May 31,2022. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2020, 2021, and 2022 are given below.

2020 2021 2022

Contract costs incurred during the year $3,400,000 $2,400,000 $2,900,000

Estimated costs to complete the contract at Dec 31 4,600,000 3,100,000 -0-

Billings 1,200,000 4,100,000 4,300,000

(a)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, 2020, 2021, and 2022. (Ignore income taxes.)

For this question (a), because "Contract costs incurred during the year", we have to add the amount of the previous year to calculate the "Actual Cost Incurred", Is this correct?

2020 2021 2022

Contract price $9,600,000 $9,600,000 $9,600,000

Less estimated cost:

Costs incurred during the year $3,400,000 $5,800,000 $8,700,000

If "Cost to Date", we should keep the amount the same with the question. Is this correct?