Ivanhoe Construction Company uses the percentage-of-completion method of accounting. In 2021, Ivanhoe began work on a contract it had received which provided for a contract price of $39500000. Other details follow:

	2021
Costs incurred during the year	$18800000
Estimated costs to complete as of December 31	12800000
Billings during the year	17500000
Collections during the year	9700000

What should be the gross profit recognized in 2021?

$7900000

$4700000

$20700000

$1566667