Stiner Builders contracted to build a high-rise for $14,000,000. Construction began in 2012 and is expected to be completed in 2015. Data for 2012 and 2013 are:

2012 2013

Costs incurred to date $1,800,000 $5,200,000

Estimated costs to complete 7,200,000 4,800,000

Stiner uses the percentage-of-completion method.

Instructions

25) How much gross profit should be reported for 2012? Show your computation.