2. When the revenue from a long-term contract is recognized over a period time, we recognize a portion of the total contract revenue based on how much of the work has been completed till the end of an accounting period. One way to determine the percentage of completion is to compute how much of the total estimated cost has been incurred. Think about the following scenarios. A firm incurred $300,000 of construction cost during the first year of a long-term construction contract. At the end of year 1, the firm estimates that it needs $500,000 more to complete the construction. 1) a. What is the total estimated cost to complete the construction based on year 1 information? b. Based on the cost numbers, what is the percentage of completion at the end of the first year