Computing Revenue and Gross Profit on Long-term Construction Contract of the contract were $1,024,000 including unexpected cost overruns of $128,000 due to labor inefficiencies. Assume that at the end of the second year of the contract, the estimate of total costs has increased to $2,400,000 million due to an increase in cost of materials. Actual costs incurred to date are $1,800,000, excluding year one inefficiencies. a. Calculate (1) recognized revenue, (2) the gross profit, and (3) adjusted contract margin to be recorded in the second year of the contract