Oriole Construction is constructing an office building under contract for Cannon Company and uses the percentage$-$of$-$completion

method. The contract calls for progress billings and payments of $$1350000$ each quarter. The total contract price is $$18738000$ and

Oriole estimates total costs of $$18000000.$ Oriole estimates that the building will take $3$ years to complete and commences

construction on January $2,2024.$ At December $31,2024,$ Seasons estimates that it is $30\%$ complete with the construction, based on

costs incurred.

By December $31,2025,$ Oriole estimates that it is $75\%$ complete with the building; however, the estimate of total costs to be incurred

has risen to $$18600000$ due to unanticipated price increases. What is the total amount of Construction Expenses that Oriole will

recognize for the year ended December $31,2025?$

$$8328600$

$$7878600$

$$13950000$

$$8550000$