Clorad Corporation uses the percentage of completion method of accounting for construction contracts. Using the following information for Year 1, compute Clorad's
(a) Total estimated costs to complete,
(b) Revenue to date,
(c) Construction cost (expense) incurred for the year,
(d) Gross profit recognized.
Year 1 (of four year project):_____________________________________
Construction costs incurred during the year ......... $ 174,000
Estimated costs to complete the contract .......... 426,000
Partial billings to customers ................ 100,000
Collections from customers ................ 25,000
Total contract price .................. 1,000,000