Roger uses the percentage-of-completion method. Calculate the gross profit to be recognized in 2021.
Roger Inc. began work in 2021 on a contract for $8,400,000. Other data are as follows:
2021 2022
Costs incurred to date $3,600,000 $5,600,000
Estimated costs to complete 2,400,000 —
Billings to date 2,800,000 8,400,000
Collections to date 2,000,000 7,200,000
Roger uses the percentage-of-completion method.
Calculate the gross profit to be recognized in 2021.
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