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Question - Windsor Construction Company uses the percentage-of-completion method of accounting. In 2014, Windsor began work on a contract it had received which provided for a contract price of $3,000,000. Other details follow for 2014:
• Costs incurred during the year $1,400,000
• Estimated costs to complete as of December 31 2014, $600,000
• Billings during the year $1,000,000
• Collections during the year $900,000
What should be the gross profit recognized in 2014?
$700,000
$1,000,000
$1,400,000
$2,100,000
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