【General guidance】The answer provided below has been developed in a clear step by step manner.Step1/2Please refer to the excel spreadsheet for all the answers.ABCDEFGH1GivenAnswer a2Plant$1,500,0003As of December 31st12Income Reported : Year 1$ 180,000=B174Cost Incurred$870,000$360,000Income Reported : Year 2$ 90,000=C175Estimated cost to completion$375,0006Billings$810,000$690,000Receivables7Cash Collections$750,000$750,000Dec 31, year 1$ 810,000=B68Dec 31, year 2$ 690,000=C69Attributes to financial presentation Inventory-Construction in progress net of billings 1012Dec 31, year 1$60,000=B4-B611Costs Incurred to date$870,000$1,230,000=B11+C4Dec 31, year 2$ (330,000)=C4-C612Estimated additional costs$375,00013Estimated Total Costs$1,245,000$1,230,000=sum(C11:C12)Answe ... See the full answer