During 2015 Cambridge Co. started a construction job with a contract price of $2,000,000.
The job was completed in 2017. The following information is available:
	2015		2016		2017
Costs incurred to date	500,000		900,000		1,100,000
Estimated costs to complete	600,000		200,000		0
Billings to date	500,000		1,400,000		2,000,000
Collections to date	450,000		1,300,000		1,800,000
Instructions:
(a) Compute the amount of gross profit to be recognized each year assuming the percentage of
completion method is used.
(b) ****EXTRA CREDIT - Prepare all necessary journal entries for 2016.
	2015		2016		2017
	2,000,000		2,000,000		2,000,000