Current Attempt in Progress Pharoah 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 $1050000 each quarter. The total contract price is $17898000 and Pharoah estimates total costs of $17450000. Pharoah estimates that the building will take 3 years to complete, and commences construction on January 2, 2021. At December 31, 2021, Pharoah estimates that it is 40% complete with the construction, based on costs incurred. At December 31, 2022, Pharoah Construction estimates that it is 80% complete with the building; however, the estimate of total costs to be incurred has risen to $17650000 due to unanticipated price increases. What is the total amount of Construction Expenses that Pharoah will recognize for the year ended December 31, 2022? $6960800$7140000$14120000$6800800