During 2025, Oriole Company started a construction job with a contract price of $1,590,000. The job was completed in 2027. The following information is available.
2025
2026
2027
Costs incurred to date
$396,000
$806,600
$1,080,000
Estimated costs to complete
594,000
283,400
-0-
Billings to date
301,000
892,000
1,590,000
Collections to date
268,000
816,000
1,427,000
(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
$