Oriole Construction Co. uses the percentage-of-completion method. In 2021, Oriole began work on a contract for $22675000; it was completed in 2022. The following cost data pertain to this contract: Year Ended December 31 2021 2022 Cost incurred during the year $7950000 $5750000 Estimated costs to complete at the end of year 5347000 If the completed-contract method of accounting was used, the amount of gross profit to be recognized for years 2021 and 2022 would be 2021 2022 $9378000. $0. $0. $9378000. $8975000. $(403000). $0. $8975000.

On June 1, 2021, Crane & Sons sold equipment to James Landscaping Service in exchange for a zero-interest bearing note with a face value of $122400, with payment due in 12 months. The fair value of the equipment on the date of sale was $115200. The amount of revenue to be recognized on this transaction in 2021 is $7200. $115200. O $115200 sales revenue and $4200 interest revenue. $122400