A-Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period.
B-Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period.

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2014 $900,000 $900,000 S900,000 2015 2016 Price Estimated Cost: Cost to date: Estimate cost to complete $270,000 $450,000 $610,000 $330,000 $150,000 S-0- Estimated Total Cost Estimated Gross Profit $600,000 $600,000 $610,000 $300,000 $300,000 $290,000