Question: Ivanhoe Construction Co. uses the percentage-of-completion method. In 2018, Ivanhoe began work on a contract for $21000000; it was completed in 2019. The following cost

Ivanhoe Construction Co. uses the percentage-of-completion method. In 2018, Ivanhoe began work on a contract for $21000000; it was completed in 2019. The following cost data pertain to this contract:

Cost incurred during the year 2018-$6600000 and 2019-$5500000

Estimated costs to complete at the end of year 2018-5100000

The amount of gross profit to be recognized on the income statement for the year ended December 31, 2019 is

$3653846.

$3800000.

$4053846.

$8900000.

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