During 2012, Nilsen Company started a construction job with a contract price of $1,600,000. The job was completed in 2014. The following information is available.

Instructions(a) Compute the amount of gross profit to be recognized each year, assuming the percentage-of completion method is used.(b) Prepare all necessary journal entries for 2013.(c) Compute the amount of gross profit to be recognized each year, assuming the completed-contract method isused.

2012 2014 2013 $825,000 Costs incurred to date Estimated costs to complete Billings to date Collections to date $400,000 $1,070,000 --0- 1,600,000 1,425,000 600,000 300,000 270,000 900,000 810,000