Applejack Construction is contracted to build a freeway for $12,000,000. Construction began in 2020 and was completed in 2021. Data relating to the construction are shown below.

		2020	2021
Costs incurred during the year		$    3,500,000.00	$  3,250,000.00
Estimated costs to complete		$    2,500,000.00
Using the percentage-of-completion method, answer the below questions.

1. How much revenue should be reported for 2020? Show your computation.

2. Make the entry to record progress billings of $4,900,000 during 2020.

3. Make the entry to record the revenue and gross profit for 2020.

4. How much gross profit should be reported for 2021? Show your computation.