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Classical Ltd. Began work in 2020 on a contract for $1,250,000. Other data are:
2020 2021
Costs incurred to date $540,000 $335,000
Estimated costs to complete as of December 31 360,000 -
Billings to date 420,000 1,250,000
Collections to date 300,000 1,000,000
Problem 1: If Classical uses the completed-contract method, the gross profit to be recognized in 2021 is?
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