Perasso Construction entered into a fixed-price contract with Santos Associates on April 1, 2013, to construct an office building. The total contract price for construction of the building is $5,000,000. The building was completed in 2015. Cost information for 2013 and 2014 were as follows: ...........................................................2013..................2014Cost incurred during the year............$400,000........$2,200,000Estimated cost to complete.............$3,600,000......$2,600,000Required: 1. Compute the gross profit or loss to be recognized during 2013 and 2014 applying the completed contract method. 2. Compute the gross profit or loss to be recognized during 2013 and 2014 applying the percentage-of-completion method.