A construction company uses the percentage-of-completion method of accounting. In 2007, the company began work on a government contract which had a contract price of $4,000,000 and estimated costs of $3,000,000. Additional data were as follows: 2007 2008 Costs incurred during the year $600,000 $2,550,000 Estimated costs to complete, as of 12/31/2007 2,400,000 Billing during the year 720,000 3,080,000 Collections during the year 500,000 3,100,000