Rainbow Builders, Inc., is a reputed construction company. During 2018, Rainbow Company started a construction job with a contract price of $1,600,000 to build a commercial building. The job was completed in 2020. The following information is available. Cost incurred to date 2018 $400,000 2019 $825,000 2020 $1,070,000 Estimated costs to complete 600,000 275,000 -0- Billing to date 300,000 900,000 1,600,000 Collections to date 270,000 810,000 1,425,000 Required: 1. Compute the amount of gross profit to be recognized each year, assuming the percentage-of- completion method is used. (21 marks) 2. Prepare all necessary entries for 2019.(7 marks) 3.Compute the amount of gross profit to be recognized each year, assuming the competed- contract method is used.(2 marks)