Gomez, Inc. began work in 2012 on contract #3814, which provided for a contract price of $9,600,000. Other details follow:

2012 2013

Costs incurred during the year $1,600,000 $4,900,000

Estimated costs to complete, as of December 31 4,800,000 0

Billings during the year 1,800,000 7,200,000

Collections during the year 1,200,000 5,850,000

76. Assume that Gomez uses the percentage-of-completion method of accounting. The portion of the total gross profit to be recognized as income in 2012 is

a. $600,000.

b. $800,000.

c. $2,400,000.

d. $3,200,000.

77. Assume that Gomez uses the completed-contract method of accounting. The portion of the total gross profit to be recognized as income in 2013 is

a. $1,200,000.

b. $1,800,000.

c. $3,100,000.

d. $9,600,000.