Ivanhoe, Inc. began work in 2018 on contract #3814, which provided for a contract price of $19650000. Other details follow: 2019 $9980000 Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year 2018 $3320000 9780000 3700000 2500000 15000000 16200000 Assume that Ivanhoe uses the completed-contract method of accounting. The portion of the total gross profit to be recognized as income in 2019 is O $6350000. O $2500000. O $19650000. O $3700000. Cullumber Co. at the end of 2017, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income Estimated litigation expense Extra depreciation for taxes Taxable income $2395000 3395000 (5406000) $ 384000 The estimated litigation expense of $3395000 will be deductible in 2018 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $1802000 in each of the next 3 years. The income tax rate is 40% for all years. The deferred tax asset to be recognized is O $720800. $958000. $1358000. O $153600