Gomez, Inc. began work in 2021 on contract #3814, which provided for a contract price of $17,600,000. Other details follow:

2021 2022

Costs incurred during the year $3,200,000 $9,800,000

Estimated costs to complete, as of December 31 9,600,000 0

Billings during the year 3,600,000 14,400,000

Collections during the year 2,400,000 15,600,000

Assume that Gomez uses the percentage-of-completion method of accounting. The portion of the total gross profit to be recognized as income in 2021 is

		$1,200,000.
		$1,600,000.
		$4,800,000.
		$6,400,000.