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3. During 2014, Gates Corp. started a construction job with a total contract price of $14,000,000. The job was completed on December 15, 2015. Additional
3. During 2014, Gates Corp. started a construction job with a total contract price of $14,000,000. The job was completed on December 15, 2015. Additional data are as follows:
2014 2015
Actual costs incurred during the year $5,400,000 $6,100,000
Estimated remaining costs 5,400,000
Billed to customer 4,800,000 9,200,000
Received from customer 4,000,000 9,600,000
Under the completed-contract method, what amount should Gates recognize as gross profit for 2015? SHOW WORK PLEASE
a. $900,000
b. $1,250,000
c. $1,900,000
d. $2,500,000
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