A) Calculate the construction costs to be expensed in 2021.

Construction costs = ? (Answer is not $4,785,000)

B) Using the completed-contract method, calculate the estimated gross profit that would be recognized during each year of the construction period.

Oriole Enterprises Ltd. has entered into a contract beginning in February 2020 to build two warehouses for Atlantis Structures Ltd. The contract is a non-cancellable fixed price contract for $9.7 million. The following data pertain to the construction period (all figures in thousands). 2020 2021 2022 Costs for the year $3,915 4,785 1,200 Estimated costs to complete 4.785 1,300 -0- Progress billings for the year (non-refundable) 3,590 4,210 1,900 Cash collected for the year 3,165 4,260 2,275