Spain Company entered into a three year contract to construct a building for a price of $400,000. Spain elects to use the completed contract method. The following amounts are provided:

Calculate the gross profit recognized for 2008.

2007 2009 140,000 2008 Construction costs incurred during theyear Estimated costs to complete the contract Partial billings to customer Collections from customer 90,000 210,000 120,000 100,000 50,000 0,00 00,000 40,000 117,000 140,000