In 2011, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2013. Information related to the contract is as follows:
2011 2012 2013
Cost incurred during the year $ 2,400,000 $ 3,600,000 $ 2,200,000
Estimated costs to complete as of year-end 5,600,000 2,000,000 0
Billings during the year 2,000,000 4,000,000 4,000,000
Cash collections during the year 1,800,000 3,600,000 4,600,000
Westgate uses the completed contract method of accounting for long-term construction contracts.
Required:
(1) Calculate the amount of gross profit to be recognized in each of the three years.