Question: Iris Construction Corp. uses the percentage-of-completion method. In 2019, Iris began work on a contract for $1,650,000 which was completed in 2020. Data on the

Iris Construction Corp. uses the percentage-of-completion method. In 2019, Iris began work on a contract for $1,650,000 which was completed in 2020. Data on the costs are:

Year Ended December 31

2019 2020

Costs incurred................................................................................................... $585,000 $420,000

Estimated costs to complete........................................................................ 390,000

What amount should Iris recognize as gross profit in the calendar year 2020?

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