Use this information to answer the following questions: Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000. The project was begun in 2017 and completed in 2018. Cost and other data are presented below:

2017

2018

Costs incurred during the year

$ 450,000

$1,100,000

Estimated costs to complete

1,050,000

0

Billings during the year

400,000

1,400,000

Cash collections during the year

300,000

1,500,000

Assume that Beavis recognizes revenue on this contract over time according to percentage of completion.

Required:
Compute the amount of gross profit recognized during 2017 and 2018.