King Construction Company began work on a contract in 2017. The contract price is $ 4,000,000, and King determined that its performance obligation was satisfied over time. Other information relating to the contract is as follows:

Required:
1. How much gross profit or loss does King recognize in 2017?
2. Next Level Prepare the appropriate sections of the 2017 income statement and ending balance sheet.

Costs incurred during the year Estimated costs to complete, December 3 Billings during the year Collections during the year 2017 800,000 600,000 2400,000 400,000