What should be the gross profit recognized

Reference no: EM131765190

Question: Windsor Construction Company uses the percentage-of-completion method of accounting. In 2016, Windsor began work on a contract it had received which provided for a contract price of $3,000,000. Other details follow for 2016:

Costs incurred during the year $1,400,000

Estimated costs to complete as of December 31 2016, $600,000

Billings during the year $1,000,000

Collections during the year $900,000

What should be the gross profit recognized in 2016?

$700,000

$1,000,000

$1,400,000

$2,100,000

Reference no: EM131765190

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