Percentage of completion and Completed contract method: Star Construction Corporation has a contract to construct a building for $10,950,000. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,850,000. Construction commenced on 4 February 20x5. Actual costs were in line with estimated costs for 20x5 and 20x6. In 20x7, actual costs exceeded estimated costs by $150,000. Total construction costs incurred in each year were as follows: 20x5: $2,700,000 20x6: $4,500,000 20x7: $1,800,000 Progress billings based on the amount of work completed were collected each year. Star Construction uses the percentage-of-completion method. The percentage-of-completion is based on costs incurred compared with estimated total costs of the project. Company also billed the client and collected the following payments Year Billings Payments Received 20x5: $2,300,000 $2,100,000 20X6: $4,900,000 $4,700,000 20X7: $3,750,000 $4,150,000 Required: Calculate Net income for the construction project for each of the three years: a) Completed contract method? 20x5:$ 20x6: $ 20x7 b) Percentage-of-completion method? (basis: estimated costs to complete) 20x5:$ 20x6: $ 20X7