Haft Construction Company has consistently applied the percentage-of-completion method.
On January 10, 2008, Haft began work ona \($3,000,000\) construction contract. At the inception date, the estimated cost of construction was \($2,250,000\). The following data relate to the progress of the contract:

Required:
In its income statement for the year ended December 31, 2009, what amount of gross profit should Haft report?

Transcribed Image Text:

Income recognized at 12/31/08 Costs incurred 1/10/08 through 12/31/09 Estimated cost to complete at 12/31/09 $ 300,000 1,800,000 600,000