The board of directors of Vaughn Construction Company is meeting to choose between the completed-contract method and the percentage-of-completion method of accounting for long-term contracts in the company's financial statements. You have been engaged to assist Vaughn's controller in the preparation of a presentation to be given at the board meeting. The controller provides you with the following information: 1. Vaughn commenced doing business on January 1, 2021. 2. Construction activities for the year ended December 31, 2021, were as follows: Project Total Contract Price Billings Through 12/31/21 Cash Collections Through 12/31/21 Contract Costs Incurred Through 12/31/21 Estimated Additional Costs to Complete Contracts A $ 503,000 $ 343,000 $313,000 $427,000 $ 104,000 B 723,000 213,000 213,000 199,500 465,500 476,500 478,000 393,000 353,000 -0- D 201,500 103,000 66,500 126,000 100,000 E 453,000 403,000 403,000 323,000 80,750 $2,357,000 $1,540,000 $1,388,500 $1,428,500 $750,250 3. Each contract is with a different customer. 4. Any work remaining to be done on the contracts is expected to be completed in 2022. Part 1 Compute the amount of income (or loss) before selling, general, and administrative expenses for the year ended December 31, 2021, which would be reported under: (1) The completed-contract method. $ (2) The percentage-of-completion method (based on estimated costs). $