During 2014, Nilsen Company started a construction job with a contract price of $1,687,000. The job was completed in 2016. The following information is available. 2014 2015 2016

Costs incurred to date $399,840 $864,880 $1,078,000 Estimated costs to complete 552,160 273,120 0 Billings to date 316,900 897,800 1,687,000 Collections to date 266,300 824,600 1,418,000

Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.

Prepare all necessary journal entries for 2015.