The Simpson Construction Company uses the percentage-of-completion

method of accounting for long-term construction contracts.

In 2005, Simpson

began work on a construction contract.

Information on this contract at the

end of 2005 is as follows

:

Cost incurred during the year

$1,500,000

Estimated cost to complete

6,000,000

Gross profit recognized in 2005

250,000

What is the contract price (total revenue) on this contract?