Perfectionist Construction Company was the low bidder on an office building construction contract. The contract bid was $9 million, with an estimated cost to complete the project of $7 million. The contract period was 3 months starting May 1, 2014. The company uses the cost-to-cost method of estimating earnings. Because of changes requested by the customer, the contract price was adjusted downward to $8.6 million on May 1, 2015. A record of construction activities for the years 2014?2017 is as follows: Year Actual Cost-Current Year Progress Billing Cash Receipts 2012 $1,900,000 $2,500,000 $1,900,000 2013 $3,600,000 $3,400,000 $3,100,000 2014 $1,670,000 $2,700,000 $2,500,000 The estimated cost to complete the contract as of the end of each accounting period is: 2012 $5,150,000 2013 $1,600,000 2014 $ 0 Calculate the gross profit for the years 2014?2016 under the percentage-of-completion method of revenue recognition. (Note: Round percentage to two decimal places for percentage completed.)

8-27 Name: stephannie pelingon Enter the appropriate amounts/formulas in the blue-shaded cells. The word \"Wrong\" will appear to the left of incorrect entries. 2012 2013 2014 To Date 1. 2. 3. Recognized in Prior Years Recognized in Current Year Actual cost incurred to date Estimated cost to complete contract Total estimated cost Percentage of completion to date 2012 Recognized revenue Cost (rounded to actual cost) Gross profit 2013 Recognized revenue Cost (rounded to actual cost) Gross profit 2014 Recognized revenue Cost (rounded to actual cost) Gross profit