On September 1, 2020, Alvarez Construction company contracted to build an office building for Payroll Administration Inc. for a total contact price of $4,500,000. Shown below are the contract costs incurred to date and the estimated costs to complete for 2020, 2021, and 2022. At the end of 2022 the project was still not completed.

Determine the amount of gross profit that should be recognized for 2020, 2021 and 2022. At 12/31/0 At 12/31/21 At 12/31/22

Contract costs incurred to date $1,200,000 2,640,000 3,750,000

Estimated costs to complete the contract 2,800,000 1,760,000 937,500

on Intermediate Accounting