Percentage-of-completion and completed-contract methods. Recognition of Profit on Long-Term Contracts During 2017, Hearns Construction Company started a construction job with a contract price of $5,600,000. Estimated total cost for the job $4,000,000. The job was completed in 2019. The following information is available. 2018 2019 4,070,000 Cost incurred to date Estimated cost to complete Billings to date Collections to date 2017 1,400,000 2,600,000 900,000 770,000 2,870,000 1,230,000 1,900,000 1,810,000 2,160,000 2,125,000 Instructions Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and for completed-contract accounting, show the gross profit that should be recorded for 2017, 2018, and 2019. Percentage-of-Completion Completed-Contract Gross Profit Gross Profit 2017 2017 2018 2018 2019 2019 Please answer the following questions for percentage of completion problem: 1. Would you recommend this project? Why or why not? 2. Which method would you recommend (Percentage of completion or completed contract method? Why? 3. Was the project total cost over-estimated or under-estimated? By how much? 4. What could be the factors that resulted in the over or under estimation of the total project cost