In 20x1, Gorgeous Too Co. enters into a fixed-price construction contract with a customer. At contract inception, Gorgeous Too Co. assesses its performance obligations in the contract and concludes that it has a single performance obligation that is satisfied over time. Gorgeous Too Co. determines that the measure of progress that best depicts its performance on the contract is input method based on costs incurred. Information on the contract follows: 20x1 20x2 Cumulative contract costs incurred 2,250,000 4,800,000 Cumulative profits recognized 750,000 1,200,000 Progress billings 2,400,000 3,600,000 Collections on progress billings 2,000,000 4,000,000 The contract is completed in 20x2