Recognition of Profit on Long term Contracts The contract price for this contract is $1,500,000 \begin{tabular}{|l|rr|rr|rr|} \hline Item & \multicolumn{2}{|c|}{20x1} & \multicolumn{2}{c|}{20x2} & \multicolumn{2}{c|}{20x3} \\ \hline Costs incurred to date & $ & 360,000 & $ & 735,000 & $ & 1,250,000 \\ \hline Estimated costs to complete & $ & 840,000 & $ & 490,000 & $ & - \\ \hline \end{tabular} a. Using the percentage of completion method, compute the amount of estimated gross profit that would be recognized each year of the construction period. Show your work b. Using the completed contract method, compute the amount of estimated gross profit that would be recognized each year of the construction period