In 2021, the Eastgate Construction Company entered into a contract to construct a bridge for $12,000,000.

The bridge was completed in 2023. Information related to the contract is as follows:

2021 2022 2023

Cost incurred during the year $1,840,000 $3,760,000 $4,500,000

Estimated costs to complete as of year-end $6,160,000 $4,400,000 $0

Billings during the year $2,700,000 $4,300,000 $5,000,000

Cash collections during thee year $2,600,000 $3,900,000 $5,100,000

Eastgate recognizes revenue over time according to the percentage of completion method.

What amount will Eastgate report on the balance sheet at 12/31/2021 for "Costs and profits in excess of billings"?