Perfectionist Construction Company was the low bidder on an office building construction contract. The contract bid was $9,000,000, with an estimated cost to complete the project of $7,000,000. The contract period was 30 months starting May 1, 2012. The company uses the cost-to-cost method of estimating earnings. Because of changes requested by the customer, the contract price was adjusted downward to $8,600,000 on May 1, 2013.

A record of construction activities for the years 2012-2015 is as follows:

The estimated cost to complete the contract as of the end of each accounting period is:
2012............$5,150,000
2013..............1,600,000
2014........................0
Calculate the gross profit for the years 2012-2014 under the percentage-of-completion method of revenue recognition.

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Actual CostProgress Current Year Cash Receipts Year 2012 $1,900,000 $2,500,000 $1,900,000 ,400,000 3,100,000 00,0002,500,000 2013 1,670,000 1,100,000