Question: Pool Contractors(PC) entered into a contract to build a solar heated swimming complex for $1,800,000. Construction commenced on July1, 2020, with a planned completion date

Pool Contractors(PC) entered into a contract to build a solar heated swimming complex for $1,800,000. Construction commenced on July1, 2020, with a planned completion date of December31, 2022. A summary of the related accounting information is providedbelow:

2020

2021

2022

Costs incurred during the year

$400,000

$500,000

$650,000

Estimated costs to complete atyear-end

1,200,000

600,000

Billings during the year

560,000

640,000

600,000

Cash collections during the year

500,000

310,000

990,000

How much gross profit would be recognized in fiscal 2021 if PC uses the percentage of completionmethod?

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