On March 1, 2014, Wilma Limited signed a contract to build a factory for Slate Construction Manufacturing Inc. for a total contract price of $9.4 million. The building was completed by October 31, 2016. The annual contract costs that were incurred, the estimated costs to complete the contract, and the accumulated billings to Slate Construction were as follows:

Instructions
Under the earnings approach:
(a) Using the percentage-of-completion method, prepare schedules to calculate the profit or loss that should be recognized from this contract for the years ended December 31, 2014 to 2016.
(b) Using the completed-contract method, prepare schedules to calculate the profit or loss that should be recognized from this contract for the years ended December 31, 2014 to 2016.
(c) Prepare all necessary journal entries for 2014 to 2016, including the entries to close the contract accounts upon completion, assuming the completed-contract method is used.

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2015 $1,600,000 $5,000,000 $2,200,000 2,084,000 2,000,000 5,100,000 30,000 4,900,000 2014 4,800,000 1,950,000 2016 Contract costs incurred during the year Estimated costs to complete the contract at Dec. 31 Billings to Slate Construction during the year Cash collections from Siate Construction during the yoar 2,550,000