### On march 1 2012 chance company entered into a contract to

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On March 1, 2012, Chance Company entered into a contract to build an apartment building. It is estimated that the building will cost \$2,016,000 and will take 3 years to complete. The contract price was \$3,494,000. The following information pertains to the construction period.

 2012 2013 2014 Costs to date \$624,960 \$1,430,650 \$2,048,000 Estimated costs to complete 1,391,040 584,350 -0- Progress billings to date 892,000 1,805,000 3,494,000 Cash collected to date 842,000 1,678,000 3,345,000

A. Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.

 Gross profit recognized in 2012 \$ Gross profit recognized in 2013 \$ Gross profit recognized in 2014 \$

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