(TCO A) Windsor Construction Company uses the percentage-of-completion method of accounting. In 2016, Windsor began work on a contract it had received which provided for a contract price of $3,000,000. Other details follow for 2016:

Costs incurred during the year $1,400,000

Estimated costs to complete as of December 31 2016, $600,000

Billings during the year $1,000,000

Collections during the year $900,000

What should be the gross profit recognized in 2016?

(Points : 5)

$700,000 $1,000,000 $1,400,000 $2,100,000