Problem 8 Accounting for long-term Contracts During 201 total contract price is $15 million. Costs incurred, estimated costs to complete at year-end. billings, and cash collections for the life of the contract are as follows: 16, Citation began construction of an office building for Altamont Corporation. The 2016 ,000,000 7,125,000 3,375,000 2017 2018 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 9,000,000 3,375,000 1,500,000 7,000,000 6,500,000 1,350,000 6,050,0007,600,000 (a) Compute the amount of revenue and gross profit to be recognized each year, assuming the percentage-of-completion method is used. (b) Prepare all necessary journal entries for 2018. (c) Prepare a partial balance sheet for December 31, 2017