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Question - P. Willingham Construction Company uses the percentage-of-completion method. During 2007, the company entered into a fixed-price contract to construct a building for Richman Company for $30,000,000. The following details pertain to the contract:
At December 31, 2007
At December 31, 2008
Percentage of completion
25%
60%
Estimated total cost of contract
$22,500,000
$25,000,000
Gross profit recognized to date
1,875,000
3,000,000
Required - Determine the amount of construction costs incurred during 2008?
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