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At the beginning of 2013, the Harding Construction Company received a contract to build an office building for $10 million. Harding will construct the building

At the beginning of 2013, the Harding Construction Company received a contract to build an office building for $10 million. Harding will construct the building according to specifications provided by the buyer, and the project is estimated to take three years to complete. According to the contract, Harding will bill the buyer in installments over the construction period according to a prearranged schedule. Information related to the contract is as follows:

2013

2014

2015

Cost incurred during the year

$2,300,000

$3,600,000

$2,100,000

Estimated costs to complete

5,300,000

2,000,000

0

Billings during the year

1,700,000

4,000,000

4,300,000

Cash collections during the year

1,600,000

3,600,000

4,300,000

Calculate the following:

Gross profit recognized:

Percentage of completion Method

Completed contract Method

2013

2014

2015

Total gross profit:

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