Home Insert Design Document1 - Word Mailings Review Layout References View Grammarly Acrobat Tell mAyda. S 3 E18-12B (Recognition of Profit on Long Term Contracts) During 2014 AFCO started a construction job with a contract price of $2,500,000. The job was completed in 2016. The following information is available. 2016 Costs incurred to date Estimated costs to completo Billings to date Collections to date 2014 $ 800,000 1,400,000 100,000 100,000 2015 $1,435,000 615,000 500,000 300,000 $2,100,000 -0- 2.500.000 2,000,000 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 2015. (c) Compute the amount of gross profit to be recognized each year assuming the completed contract method is used