Shaq Fu Construction Company began work on a $420,000 construction contract in 2008. During 2008, Shaq Fu incurred costs of $288,000, billed its customer for $215,000, and collected $175,000. At December 31, 2008, the estimated future costs to complete the project total $162,000. Determine Shaq Fu’s profit or loss for 2008 using
(a) The percentage-of-completion method and
(b) The completed-contract method, if any.