PROBLEM TWO: Revenue Recognition Bridgeways Construction Company, Inc., entered into a fixed-price contract with Workforce Suppliers Inc, on July 1, 2018, to construct a four-story office building. At that time, Bridgeways estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $4,000,000. Bridgeways concludes that the contract does not qualify for revenue recognition over time. The building was completed on December 31, 2020. Estimated percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Workforce Suppliers Inc. under the contract were as follows: At 12-31- At 12-31- At 12-31- 2018 2019 2020 -0- Percentage of completion 10% 60% 100% Costs incurred to date $ 350,000 $2,500,000 $4,250,000 Estimated costs to 3,150,000 1,700,000 complete Billings to Workforce 720,000 2,170,000 3,600,000 Suppliers Inc., to date Required: 1. For each of the three years, prepare a schedule to compute total gross profit or loss to be recognized as a result of this contract. 2. Assuming Bridgeways recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years. 3. Assuming Bridgeways recognizes revenue over time according to percentage of completion, compute the amount to be shown in the balance sheet at the end of 2018 and 2019 as either cost in excess of billings or billings in excess of costs