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:

Year Ended December 31

2018 2019

Cost incurred during the year $6600000 $5500000

Estimated costs to complete at the end of year 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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