What amount of gross profit would be recognized


Amazon Building, Inc. won a bid for a new warehouse building contract.
Below is information from the project accountant.
Total Construction Fixed Price $12,000,000
Construction Start Date June 13, 2012
Construction Complete Date December 16, 2013

As of Dec. 31... 2012 2013
Actual cost incurred $3,500,000 $5,360,000
Estimated remaining costs $5,250,000 $-
Billed to customer $5,000,000 $7,000,000
Received from customer $4,500,000 $6,500,000
Assuming Amazon Building, Inc. uses the completed contract method, what amount of gross profit would be recognized in 2013?

 

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Accounting Basics: What amount of gross profit would be recognized
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