Perasso Construction entered into a fixed price contract with Santos Associates on April 1, 2018, to construct an office building. The total contract price for construction of the building is $5,000,000. The building was completed in 2008. Cost information for 2016 and 2017 were as follows:

2016 2017

Costs incurred during the year 400,000 2,200,000

Estimated costs to complete 3,300,000 2,500,000

Compute the gross profit or loss to be recognized during 2016 and 2017 applying the revenue recognition over time method.