Question: Goldy Group started a long-term construction project in 2017. The following data relate to this project: Contract price $4,200,000 Costs incurred in 2017 $1,750,000 Estimated

Goldy Group started a long-term construction project in 2017. The following data relate to this project:

Contract price $4,200,000

Costs incurred in 2017 $1,750,000

Estimated costs to complete $1,750,000

Progress billings $900,000

Collections on progress billings $800,000

What amount of gross profit should be recorded in Goldy Groups income statement related to this project assuming the project is accounted for using

a) Percentage of completion method?

b) Completed contract method?

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