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On February 1, 2020, a company agreed to construct a building at a contract price of $40,000. The company estimated the project would be finished

On February 1, 2020, a company agreed to construct a building at a contract price of $40,000. The company estimated the project would be finished in 2022. Information relating to the costs and billings for this contract is as follows:

2020 2021 2022

Total costs incurred to date $8,000 $10,000 $22,000

Estimated costs to complete 12,000 6,000 -0-

Customer billings to date 8,000 18,000 28,000

Collections to date 5,000 15,000 26,000

If the company uses the percentage-of-completion method, the gross profit to be recognized in 2021 is___________________________ .

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