A Company Began Work on a Government Contract at the Start

A company began work on a government contract at the start of 2007. The contract was to construct a special building for $4,000,000. In making the bid, construction costs were estimated to be $3,000,000. Data during the construction period was: $\begin{array}{|l|l|l|}\hline &2007&2008\\\hline \text { Costs incurred this year } & \$ 600,000 & \$ 2,550,000 \\\hline \text { Estimated cost to complete as of } 12 / 31 & 2,400,000 & -0- \\\hline \text { Billings to the government during the year } & 720,000 & 3,280,000 \\\hline \text { Cash collected during the year } & 500,000 & 3,500,000 \\\hline\end{array}$ How much income on the contract would be reported for each year assuming:
(a) Completed contract method?
2007: $______________ 2008: $_______________.
(b) Percentage-of-completion method? (basis: estimated costs to complete)
2007: $________________ 2008: $_______________.