Johnson Construction sets up a contract with Julian Properties 7/1/2013.

Johnson Construction will complete the project in a 18 months (see table for details).

Johnson Construction uses the %-age of completion method.

Calculate the amount Johnson should record for gross profit.

Please solve using Excel financial formulas wherever it applies and show work in Excel.

Price of contract	$5,000,000
Estimated cost to complete at 7/13/13	$3,000,000
Cost incurred on project 2013	$1,250,000
Estimated cost at 12/31/13 to complete	$1,700,000
Amount billed to Johnson under contract	$1,000,000