King Construction Company began work on a contract in 2017. The contract price is $ 4,000,000, and King determined that its performance obligation was satisfied over time. Other information relating to the contract is as follows:

Required:
1. How much gross profit or loss does King recognize in 2017?
2. Next Level Prepare the appropriate sections of the 2017 income statement and ending balance sheet.

Transcribed Image Text:

Costs incurred during the year Estimated costs to complete, December 3 Billings during the year Collections during the year 2017 800,000 600,000 2400,000 400,000