Crane Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress bilings and payments of $1250000 each quarter. The total contract price is $18816000 and Crane estimates total costs of $17550000. Crane estimates that the building will take 3 years to complete and commerces construction on January 2, 2021. At December 31, 2021. Crane estimates that it is 30% complete with the construction based on costs incurred. At December 31, 2022. Crane Construction estimates that it is 75% complete with the building, however, the estimate of total costs to be incurred has risen to $1775000 due to unanticipated price increases. What is the total amount of Construction Expenses that Crane will recognize for the year ended December 31, 2022? $13312500 $7667700 $7517700 $8047500