Required information

[The following information applies to the questions displayed below.] Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,850,000. The project was begun in 2017 and completed in 2018. Cost and other data are presented below:

	2017			2018
Costs incurred during the year	$	435,000		$	1,150,000
Estimated costs to complete		1,015,000			0
Billings during the year		425,000			1,425,000
Cash collections during the year		325,000			1,525,000

Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Compute the amount of gross profit recognized during 2017 and 2018.