View Policies Current Attempt in Progress In 2020, Headland Construction Corp began construction work under a 3-year contract. The contract price was $1,040,000 Headland uses the percentage of completion method for financial accounting purposes. The income to be recognized each year is based on the proportion of cost incurred to total estimated costs for completing the contract. The financial statement presentations relating to this contract at December 31, 2020, are shown below. $16,500 Balance Sheet Accounts receivable Construction in process Less: Billings Costs and recognized profit in excess of billings $61,000 59.700 1.300 Income Statement Income (before tax) on the contract recognized in 2020 $15.250 (a) How much cash was collected in 2020 on this contract? Portion of contract billings collected $ (b) What was the initial estimated total income before tax on this contract? During 2020, Kingbird Company started a construction job with a contract price of $1.580,000. The job was completed in 2022. The following information is available. 2021 $820,500 2020 5424.200 585,800 297.000 273.000 2022 $1.077.000 0 Costs incurred to date Estimated costs to complete Billings to date Collections to date 273.500 894000 1.580,000 1419.000 B16000 (a) Your answer is partially correct Compute the amount of gross profit to be recognized each year, assuming the percentage of completion method is used Gross profit recognized in 2020 200 $ 125100 Gross profit recognized in 2021 5 Gross profit recognised in 2022