Question 2: Tricky Ricky Construction Company, Inc., entered a fixed price contract with Gracelyn Associates on July 1, 2021, to construct a four-story office building. At that time, Tricky Ricky estimated that it would take berween two and three years to complete the project. The total contract price for construction of the building is $4.325,000. The building was completed on December 31, 2023. Estimated percentage of completion, accumulated contract costs incurred. estimated costs to complete the contract, and accumulated billings to Gracelyn under the contract were as follows: Est. Costs to complete 12/31/21 12/31/22 12/31/23 % Complete 10% 75% 100% Costs incurred to date $350,000 S2.700.000 $4,350,000 20 7 so Billings to Gracelyn, to date 220,000 2.170.000 4,325,000 Hint: Even though the estimated costs to complete has not been provided you can calculate this number because you have been given the complete and can therefore calculate the total estimated costs Required: 1. Compute gross profit or loss to be recognized as a result of this contract for each of the three years. Tricky Ricky concludes that the contract does not qualify for revenue recognition over time. 2. Assuming Tricky Ricky recognizes revenue over time according to percentage of completion compute gross profit or loss to be recognized in each of the three years 3. Assuming Tricky Ricky recognizes revenue over time according to percentage of completion, compute the amount to be shown in the balance sheet at the end of 2021 and 2022 as either cost in excess of billings or billings in excess of costs TAL