Thompson Construction began a construction project in 2016. The contract price was $1,250,000, and the estimated costs were $1,000,000. Data for each year of the contract are as follows:

	2016	2017	2018
Costs incurred during the year	$250,000	$600,000	$190,000
Estimated costs to complete	750,000	212,500	-0-
Partial Billings	375,000	500,000	375,000
Collections	187,500	469,000	593,500

Instructions: Assuming Thompson satisfies its performance obligation over time:

1.) Prepare a schedule that computes the gross profit for 2016 - 2018.

2.) Determine balance of Construction in Progress at the end of 2016

3.) Determine the net amount for construction in progress inventory should be reported on the 2017 balance sheet.