Q1:Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period.

Q2:Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period.

Shanahan Construction Company has entered into a contract beginning January 1, 2014, to build a parking complex. It has been estimated that the complex will cost $648,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $972,000. The following data pertain to the construction period.

		2014		2015		2016
Costs to date		$291,600		$486,000		$658,800
Estimated costs to complete		356,400		162,000		0
Progress billings to date		291,600		594,000		972,000
Cash collected to date		259,200		540,000		972,000