Your construction company entered into a four year contract to build a store for a fixed price of $7,000,000. You estimated your costs at 6,200,000. It is now the end of the 2nd year and you estimate that you are 50% complete and your estimate to complete will be 7,500,000 because of labor problems. What are the two alternative methods that can be used to record revenue on this multi-year project and what is the affect if:

1.estimate a total loss on the project ?

. 2. You believe that the estimated costs can be reduced and you will make an overall profit on the project. explain