5) Use this information to answer the following questions:

Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000. The project was begun in 2020 and completed in 2021. Cost and other data are presented below:

2020 2021

Costs incurred during the year $450,000 $1,100,000

Estimated costs to complete 1,050,000 0

Billings during the year 400,000 1,400,000

Cash collections during the year 300,000 1,500,000

Assume that Beavis recognizes revenue upon completion of the project. Required: Compute the amount of gross profit recognized during 2020 and 2021.