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Mars Corporation uses the completed-contract method. At the end of the first year of a $9,000,000 contract, the following information is available: Costs to date:
Mars Corporation uses the completed-contract method. At the end of the first year of a $9,000,000 contract, the following information is available:
Costs to date: | $2,000,000 |
Estimated costs to complete | 6,000,000 |
Progress billings during the year | 1,800,000 |
Cash collected during the year | 1,500,000 |
In the first year, Mars should recognize gross profit of
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