Question: Blues Construction Corp. has consistently used the percentage-of-completion method. During 2020, Blues entered into a fixed-price contract to construct an office building for $6,000,000. Information

Blues Construction Corp. has consistently used the percentage-of-completion method. During 2020, Blues entered into a fixed-price contract to construct an office building for $6,000,000. Information relating to the contract is as follows:

At December 31 2020 2021

Percentage of completion 15% 45%

Estimated total cost at completion$4,500,000 $4,800,000

Gross profit recognized (cumulative)225,000 540,000

Under the earnings approach, contract costs incurred during 2021 were?

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