Six States Construction Co. began work on a new bridge over the Illinois River on January 1, 2014. The project is to be completed by December 31, 2016, for a fixed price of $500 million. In order to ensure that the project has enough funds for completion, the accountants have front-loaded the profits into the first year. The following is a year-by-year recap of construction costs incurred and the estimated costs to complete the project as of the end of each year. Progress billings and cash collections are also indicated.

Determine the amount of gross profit or loss to be recognized in each of the three years applying both the percentage-of-completion and completed contract methods.

2014 2015 2016__-- Actual costs incurred during the year Actual costs incurred in prior years Cumulative actual costs incurred to date Estimated costs to complete at the end of the year Total costs (act.est) Billings made during the year Cash collections during the year $135,000,000 $225,000,000 $45,000,000 135,000,000 360,000,000 $135,000,000 $360,000,000 $405,000,000 40,000,000 315,000,000 $450,000,000 $200,000,000 $400,000,000 $200,000,000 S405,000,000 $100,000,000 $175,000,000 $200,000,000 $125,000,000