On March 1, 2007, Winter Company entered into a contract to build an apartment building. It is estimated that the building will cost $2,000,000 and will take 3 years to complete. The contract price was $3,000,000. The information on page 347 pertains to the construction period.

Instructions
Compute the amount of gross profit to be recognized each year assuming the percentage-of-completion method isused.

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2008 $ 600,000 $1,560,000 $2,100,000 1,050,000 2,100,000 3,000,000 2007 2009 Costs to date Estimated costs to complete Progress billings to date Cash collected to date 1,400,000 390,000 950,000 1,950,000 2,750,000