On April $1,2025,$ Sandhill Inc. entered into a cost plus fixed fee contract to construct an electric generator for Sweet Acacia Corporation. At the contract date, Sandhill estimated that it would take $2$ years to complete the project at a cost of $$2,060,000.$ The fixed fee stipulated in the contract is $$468,000.$ Sandhill appropriately accounts for this contract under the percentage$-$of$-$completion method. During $2025,$ Sandhill incurred costs of $$762,200$ related to the project. The estimated cost at December $31,2025,$ to complete the contract is $$1,297,800.$ Sweet Acacia was billed $$584,000$ under the contract.

Prepare a schedule to compute the amount of gross profit to be recognized by Sandhill under the contract for the year ended December $31,2025.($If an amount reduces the account balance then enter with negative sign., e$.$g$.-45$ or parentheses e$.$g$.(45).)$

SANDHILL INC.

Computation of Gross Profit to be Recognized on Uncompleted Contract

Total Contract Price