At contract inception, Red Hot Co. assessed that its performance obligation in each of Contract 1 and Contract 2 is satisfied at a point in time, that is, when the construction is completed. How much total profit (loss) is recognized from the two contracts in 20x1?

Information on Red Hot Co.'s construction contracts with customers which commenced during 20x1 is shown below: Contract 1 Contract 2 Contract price 420,000 300,000 Costs incurred during the year 240,000 280,000 Estimated costs to complete 120,000 40,000 Progress billings 150,000 270,000 Collections 90.000 250.000