Exercise 5-14 Completed contract method; loss projected on entire project [LO5-5] On February 1, 2013, Arrow Construction Company entered into a

Exercise 5-14 Completed contract method; loss projected on entire project [LO5-5]On February 1, 2013, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,000,000. During 2013, costs of $2,000,000 were incurred with estimated costs of $4,000,000 yet to be incurred. Billings of $2,500,000 were sent and cash collected was $2,250,000.In 2014, costs incurred were $2,500,000 with remaining costs estimated to be $3,600,000. 2014 billings were $2,750,000 and $2,475,000 cash was collected. The project was completed in 2015 after additional costs of $3,800,000 were incurred. The company’s fiscal year-end is December 31. Arrow uses the completed contract method.Required:1.