Question - Benny Building, Inc. won a bid for a new warehouse building contract. Below is information from the project accountant.
Total Construction Fixed Price $22,000,000
Construction Start Date June 13, 2012
Construction Complete Date December 16, 2013
As of Dec. 31... 2012 2013
Actual cost incurred $9,500,000 $8,360,000
Estimated remaining costs $8,250,000 $-
Billed to customer $11,000,000 $11,000,000
Received from customer $10,000,000 $9,000,000
Assuming Benny Building, Inc. uses the completed contract method, what amount of gross profit would be recognized in 2013?
$4,140,000
$1,865,352
$1,140,000
$2,215,775