Carla Vista Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $1000000 each quarter. The total contract price is $18060000 and Carla Vista estimates total costs of $17950000. Carla Vista estimates that the building will take 3 years to complete, and commences construction on January 2. 2018. At December 31, 2019. Carla Vista Construction estimates that it is 70% complete with the building: however, the estimate of total costs to be incurred has risen to $18400000 due to unanticipated price increases. What is the total amount of Construction Expenses that Carla Vista will recognize for the year ended December 31, 2019? \begin{tabular}{|} $12880000 \\ \hline$7462000 \\ \hline$7147000 \\ \hline$7495000 \end{tabular}