USE THE FOLLOWING INFORMATION TO ANSWER THE QUESTIONS:

During Year 1, Sparky Construction Company has a contract to construct a $4,500,000 high-rise apartment building at an estimated cost of $4,000,000. The contract is to start in July of Year 1 and the high-rise apartment building is to be completed in October of Year 3. The following data pertain to the construction period (Note: by the end of Year 2, Sparky has revised the estimated total cost from $4,000,000 to $4,050,000)

	Year 1	Year 2	Year 3
Costs to Date	$1,000,000	$2,916,000	$4,050,000
Estimated costs to complete	$3,000,000	$1,134,000	$ - 0 -
Progress billings during the year	$ 900,000	$2,400,000	$1,200,000
Cash collected during the year	$ 750,000	$1,750,000	$2,000,000

determine how much Revenue Sparky should report in Year 3. $________________________

Using the information above, determine the amount of Gross Profit Sparky should report in Year 2: $______________________________