if pell used the percentage of completion method what amount of gross profit loss wo 603542

Items 1 and 2 are based on the following data pertaining to Pell Co.’s construction jobs, which commenced during 2006:

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	Project 1	Project 2
Contract price	$420,000	$300,000
Costs incurred during 2006	240,000	280,000
Estimated costs to complete	120,000	40,000
Billed to customers during 2006	150,000	270,000
Received from customers during 2006	90,000	250,000

If Pell used the completed contract method, what amount of gross profit (loss) would Pell report in its 2006 income statement?

If Pell used the percentage-of-completion method, what amount of gross profit (loss) would Pell report in its 2006 income statement?