INTERMEDIATE ACCOUNTING 2 PLZ SOLVE URGENTLY

6 points Save Answer American Construction Company has entered into a contract with American University in Cairo beginning January 1, 2017 to construct Digital Library Building. It has been estimated that the costs of the building to be $2,100,000 and the contract price will be $3,265,000. It will take 3 years to construct the building. The company uses cost recovery method. If the following data pertain to the building during the construction period. 2017 2018 2019 Costs to date $945,000 $1,575,000 $2,135,000 Estimated costs to complete 1,155,000 525.000 Progress billings to date 900,000 1,970,000 3,265,000 Cash collected to date 800,000 1,750,000 3,265,000 Requirements: Required 1: Compute the gross profit of loss recognized each year. Required 2: The balance of construction in process in 2017 and 2018 will be: Required 3: Assume the same data for the digital library contract except that the estimated cost in 2018 was $1,050,000 instead of S525,000. A. Compute the gross profit or loss recognized in 2018. B. Provide explanation for you answer? Required 4: Assume the same data for the digital library contract except that the estimated cost in 2018 was $2,100,000 instead of $525,000 and the cost to date in 2019 was $3,675,000 instead of $2.135.000. A. Compute the gross profit or loss recognized in 2017 and 2018. B. Prepare the journal entry to recognize the loss (if any) in 2018. ALT+F10 (PC) or ALT+FN+F10 (Mac)