Problem 138 Dobson Construction specializes in the construction of commercial and industrial buildings. The contractor is experienced in bidding long-term construction projects of this type, with the typical project lasting fifteen to twenty-four months. The contractor uses the percentage-of-completion method of revenue recognition since, given the characteristics of the contractor's business and contracts, it is the most appropriate method. Progress toward completion is measured on a cost-to-cost basis. Dobson began work on a lump-sum contract at the beginning of 2018. As bid, the statistics were as follows: $3,930,000 Lump-sum price (contract price) Estimated costs Labor Materials and subcontractor Indirect costs $ 843,000 1,743,000 393,000 2,979,000 $951,000 At the end of the first year, the following was the status of the contract: $2,180,000 Billings to date Costs incurred to date Labor Materials and subcontractor Indirect costs Latest forecast total cost $457,000 641,000 186,000 1,284,000 2,979,000 It should be noted that included in the above costs incurred to date were standard electrical and mechanical materials stored on the job site, but not yet installed, costing $151,980. These costs should not be considered in the costs incurred to date. Compute the percentage of completion on the contract at the end of 2018. Percentage of completion % Indicate the amount of gross profit that would be reported on this contract at the end of 2018. Gross profit