the construction activity for the year-end 31 December 2020, are as follows:

project	contract price	costs incurred to 31/12/2020	estimated costs to complete	billing to 31/12/2020	cash collections to 31/12/2020
AB	$2,000,000	$600,000	$1,400,000	$450,000	$410,000

Required:

1) Prepare a schedule by project, showing clearly the amount of gross profit (loss) of the project before deducting selling, general, and administrative expenses for the year ended 31 December 2020 using the percentage-of-completion method. (based on estimated costs.)

2)Based on the schedule, show the amount of gross profit ( or loss) before selling, general, and administrative expenses for the year ended 31 December 2020, which would be reported if the following method are used:

(I) the cost-recovery method.

(II) The percentage-of-completion method ( based on estimated costs)

3) Prepare all the necessary general journal entries for the project AB for the financial year 2020, using the percentage-of-completion method.