Question: Shock Wave, Inc. began work on a $7,000,000 contract in 2008 to construct an office building. During 2008, Shock Wave, Inc. incurred costs of $1,715,000.

Shock Wave, Inc. began work on a $7,000,000 contract in 2008 to construct an office building. During 2008, Shock Wave, Inc. incurred costs of $1,715,000. At December 31, 2008, the estimated future costs to complete the project total $3,185,000. Compute the estimated revenue and gross profit to be recognized in 2008.

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