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.

202020212022

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

Estimated costs to complete the contract at Dec 314,600,0003,100,000-0-

Billings1,200,0004,100,0004,300,000

"(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.)

(b)Using the completed-contract 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 incomes taxes.)"