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Tamarisk Construction Company has entered into a contract beginning January 1, 2017, to build a parking complex. It has been estimated that the complex will

Tamarisk Construction Company has entered into a contract beginning January 1, 2017, to build a parking complex. It has been estimated that the complex will cost $601,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $903,000. The following data pertain to the construction period.

2017

2018

2019

Costs to date $270,450 $492,820 $613,000
Estimated costs to complete 330,550 108,180 0
Progress billings to date 273,000 550,000 903,000
Cash collected to date 243,000 500,000 903,000

(a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period.

b) Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period

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