A Construction Company Uses the Percentage-Of-Completion Method of Accounting Calculate the Gross Profit to Be Recognized During 2007

A construction company uses the percentage-of-completion method of accounting. In 2007, the company began work on a government contract, which had a contract price of $4,000,000 and estimated costs of $3,000,000. Additional data were as follows: $\begin{array}{|l|l|l|}\hline & 2007 & 2008 \\\hline \text { Costs incurred this year } & \$ 600,000 & \$ 2,550,000 \\\hline \text { Estimated cost to complete as of } 12 / 31 / 2007 & 2,400,000 & -0- \\\hline \text { Billings during the year } & 720,000 & 3,080,000 \\\hline \text { Collections during the year } & 500,000 & 3,100,000 \\\hline\end{array}$ Calculate the gross profit to be recognized during 2007.