Punk Construction Corp. has consistently used the percentage-of-completion method. In 20x7, Punk started work on a $7,000,000 construction contract that was completed in 20x8. The following information was taken from Cymbal’s 20x7 accounting records:

Billings to date......................................... $2,200,000
Costs incurred......................................... 2,100,000
Collections to date................................. 1,400,000
Estimated costs to complete................ 4,200,000

What amount of gross profit should Cymbal recognize in 20x7 on this contract?

$700,000

$466,667

$350,000

$233,333