1. In Year 1, a contractor agrees to build a building for $1,675,000 by the end of year 2. The builder's cost is estimated to be $1,225,000. The actual costs in Year 1 are $575,000 and Year 2's actual costs are $700,000. Under the completed contract method, the gross profit for Year 1 is (show work)

2. In Year 1, a contractor agrees to build a building for $3,000,000 by the end of Year 2. The builder's cost is estimated to be $2,000,000. The actual costs for Year 1 are $800,000 and Year 2's actual costs are $1,150,000. Under the percentage of completion method Year 1's gross profit is (show work)