1. Shannon Construction Co. has consistently used the percentage-of-completion method of recognizing revenue. During 2018, Shannon entered into a fixed-price contract to construct an office building for $28,000,000. Information relating to the contract is as follows:

At December 31

2018 2019

Percentage of completion 15% 45%

Estimated total cost at completion $21,000,000 $22,400,000

Gross profit recognized (cumulative) 1,400,000 3,360,000

Contract costs incurred during 2019 were