During 2014, Bill Corp. started a construction job with a total contract price of

$20,000,000. The job was completed on December 15, 2015. Additional data are as follows:

2014 2015

Actual costs incurred $5,000,000 $6,000,000

Estimated remaining costs 5,000,000

Billed to customer 4,800,000 9,200,000

Received from customer 4,000,000 9,600,000

REQUIRED:

(a)$_____________________________Under the percentage-of-completion method, what amount should Bill have recognized as gross profit for 2014?

all supporting schedules and computations for every answer are presented in good traceable order

(b)$____________________________Under the percentage-of-completion method, what amount should Bill recognize as gross profit for 2015?

all supporting schedules and computations for every answer are presented in good traceable order