During 2025, Crane Company started a construction job with a contract price of $1,620,000. The job was completed in 2027. The
following information is available.
Costs incurred to date
Estimated costs to complete
Billings to date
Collections to date
2025 2026 2027
$430,000 $819,750 $1,071,000
570,000 273,250 -0-
301,000 895,000 1,620,000
272,000 807,000 1,433,000
(a)
Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.
Gross profit recognized in 2025
Gross profit recognized in 2026
Gross profit recognized in 2027