Revenue Recognition Assignment: Please be very clear with your answers and be sure your name is on each page you submit. There are three questions (A, B, and C) below. You are not allowed to work with anyone on this assignment. List each question prior to your response or calculation then put your answer in bold type. This assignment must be submitted to the dropbox no later than Tuesday, November 6, prior to class. Any questions, let me know.. A) Thompson Construction began a construction project in 2014. The contract price was $1,250,000, and the estimated costs were $1,000,000. Data for each year of the contract are as follows: 2014 2015 2016 Costs incurred during the year $250,000 $600,000 $190,000 Estimated costs to complete 750,000 212,500 -0- Partial billings 375,000 500,000 375,000 Collections 187,500 469,000 593,500 Required (12 points): a. Assuming Thompson uses the percentage-of-completion method of revenue recognition, determine: (1) The balance of Construction in Progress at the end of 2014. (2) How the net amount for construction in progress inventory should be reported on the 2015 balance sheet. (3) The gross profit for 2016. b. Assuming Thompson uses the completed-contract method of revenue recognition, determine: (1) The balance of Construction in Progress at the end of 2014. (2) How the net amount for construction in progress inventory should be reported on the 2015 balance sheet. (3) The gross profit for 2016. B) Pensacola Building Co. signed a contract to build a road over a period of three years for a price of $600,000. Information relating to the performance of the contract is summarized below: 2014 2015 Construction costs incurred during the year $110,000 $226,000 Estimated costs to complete 330,000 224,000 Billings during the year (all collected in cash) 100,000 290,000 Required (14 points): a. Assuming the percentage-of-completion method was in use, show how Construction in Progress would be disclosed on the balance sheet at December 31, 2014. b. Assuming the percentage-of-completion method was in use, prepare all 2015 entries. c. Assume that the completed-contract method was in use and that the project was completed in 2016, during which time additional construction costs of $220,000 were incurred and the remaining $210,000 was billed. Present just the two project completion revenue and expense recognition entries. C) Aberdeen Company sold an asset for $450,000 during 2014, its first year of operations. The asset cost Aberdeen $300,000, and the sale was recorded using the cost recovery method. Cash collections were as follows: $100,000 in 2014; $200,000 in 2015; and $150,000 in 2016. Required (12 points): a. Prepare all journal entries connected with the sale for all three years. b. Show how the net amount of the accounts receivable would be disclosed on the 2015 balance sheet