Kylee Builders Inc. is building a new home for Cassie Profit at a contracted price of $170,000. The estimated cost at the time the contract is signed (January 2, 2011) is $115,000. At December 31, 2011, the total cost incurred is $60,000 with estimated costs to complete of $59,000. Kylee has billed $80,000 on the job and has received a $55,000 payment. This is the only contract in process at year-end. Prepare the sections of the balance sheet and the income statement of Kylee Builders Inc. affected by these events assuming use of

(1) The percentage-of-completion method and

(2) The completed-contract method.