During 2023, Ivanhoe Company started a construction job with a contract price of $1,664,000. The job was completed in 2025. The
following information is available. The contract is non-cancellable.
2023
2024
2025
Costs incurred to date
$416,000
$858,000 $1,112,800
Estimated costs to complete
624,000
286.000
0
Billings to date (non-refundable) 312,000
936,000
1,664,000
Collections to date
280,800
842,400
1,482,000
(a)
X Your answer is incorrect.
Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. (Enter
negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
2023
2024
2025
Gross profit/(loss)
S
192000
S
108000
S
124000