Problem 3 Deen Construction began a construction project in 2018. The contract price was $1,250,000, and the estimated costs were $1,000,000. Data for each year of the contract are as follows: 2018 2019 2020 250,000 $600,000 $190,000 212,500 500,000 469,000 Costs incurred during the year Estimated costs to complete Partial billings Collections 750,000 375,000 187,500 -0 375,000 593,500 Instructions: Assuming Deen the percentage of completion method: (a) Prepare a schedule that computes the gross profit for 2018 2020 (b) Determine the net amount for construction in progress inventory should be reported on the 1. 2018 balance sheet. (c) Prepare all the necessary journal entries for 2019 Compute the amount of gross profit to be recognized each year, assuming the completed contract method is used. 2. You must show supporting computations to receive credit