The answers are bolded. Please provide detailed explanation on how to get the answers. Thank you.

Bretts Construction Company had a contract starting April 2013, to construct a $6,000,000 building that is expected to be completed in September 2015, at an estimated cost of $5,500,000. At the end of 2013, the costs to date were $2,530,000 and the estimated total costs to complete had not changed. The progress billings during 2013 were $1,200,000 and the cash collected during 2013 was $800,000.

3. For the year ended December 31, 2013, Bretts would recognize gross profit on the building of:

A.	$210,833
B.	$230,000
C.	$270,000
D.	$ 0

4. At December 31, 2013, Bretts would report Construction in Process in the amount of:

A.	$ 230,000
B.	$2,530,000
C.	$2,760,000