Blue Suede Construction Corp used the percentage-of-completion method of revenue recognition. They were contracted to build the new amphitheater for $4500000. Additional information was provided: As of Dec 31. 2012 2013 Percentage of completion 35% 60% Estimated total expected costs $3,750,000 $3,900,000 Gross profit recognized $225,000 $300,000 Contracted costs incurred during 2013 were $975,000 $2,340,000 $825,000 $1,027,500