Turner, Inc. began work on a $7,000,000contract in 2010 to construct an office builidng. During 2010,Turner, Inc. incurred costs of $1,700,000, billed thier customersfor $1,200,000, and collected $960,000. At December 31, 2010, theestimated future costs to complete the project total $3,300,000.Prepare Turner's 2010 journal entries using thepercentage-of-completion method.

Construction inProcess........................................................................1,700,000 Materials,Cash, Payables, etc....................................................1,700,000

Accounts Receivable............................................................................1,200,000 Billingson Construction in Process........................................... 1,200,000

Cash.......................................................................................960,000 AccountsReceivable..................................................................960,000

Construction inProcess........................................................................680,000 [($1,700,000 5,000,000) X$2,000,000]

Construction Expenses.........................................................................1,700,000

Revenuefrom Long-Term Contracts..........................................2,380,000

($7,000,000,000X 34%)

I just don't understand this part. Where didthe 5,000,000 and the 2,000,000 and the 34% come from?