Percentage of completion

Tall Constructions Ltd had a large three-year project with total revenue of $5 500 000 and estimated total costs of $4 500 000. The project was 30 per cent complete at the end of the first year, 65 per cent complete at the end of the second year, and 100 per cent complete at the end of the third year. Revenues and costs were as estimated.

1. 1 What profit was earned during the first year if the percentage of completion method was used?

2. 2 What profit was earned during the second year if the percentage of completion method was used?