Use the following information for questions 4 and 5:

Lopez, Inc. began work in 20X4 on contract #3814, which provided for a contract #3814, which provided for a contract price of $4,800,000- Other details follow:

20X4 20X5

Costs incurred during the year $800,000 $2,450,000

Estimated costs to complete_f as of 12/31 2,400,000 0

Billings during the year 900,000 3,600,000

Collections during the year 600,000 3,900,000

Assume that Lopez uses the completed-contract method of accounting. The portion of the total gross profit to be recognized as income in 20X5 is

1. $600,000.
2. $900,000.
3. $1,550,000.
4. $4,800,000.