Zamponi's Construction Company reports its income for tax purposes on a completed contract basis and income for financial statement purposes on a percentage-of-completion basis. A record of construction activities for 2013 and 2014 follows:

General and administrative expenses for 2013 and 2014 were $60,000 for each year and are to be recorded as a period cost.
Instructions:
1. Calculate the income for 2013 and 2014 that should be reported for financial statement purposes.
2. Calculate the income for 2014 to be reported on a completed-contract basis.

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Cost IncurrEst Estimated Cost to Complete Cost Incur 2014 Estimated Cost to Complete red- Project Contract Price 2013 $1,450,000 $840,000 720,000 160,000 $560,000 880,000 480,000 $480,000 340,000 431,500 280,000 0 650,000 58,500 520,000 1,700,000 850,000 1,200,000