1. In 2021, Silverchair Co., a construction company, enters into a contract with a customer for the construction of a building. The contract states a fixed fee of 8,700,000. Silverchairs performance obligation in the contract is satisfied over time. Silverchair uses the cost-to-cost method in measuring its progress in the contract. Information on the contract follows:

	2021	2022
Estimated total costs at completion	6,525,000	6,960,000
Percentage of completion	15%	65%

How much is the profit recognized in 2022?

1. 1,131,000
2. 978,750
3. 840,750
4. 804,750