A Construction Company Has Consistently Used the Percentage-Of-Completion Method of Recognizing

A construction company has consistently used the percentage-of-completion method of recognizing income. In 2007, the company started work on a $6,000,000 construction contract, which was completed in 2008. The accounting records disclosed the following data: $\begin{array} { | l | l | l | } \hline & \mathbf { 2 0 0 7 } & \mathbf { 2 0 0 8 } \\\hline \text { Progress billings } & \$ 3,800,000 & \$ 2,200,000 \\\hline \text { Estimated cost to complete as of } 12 / 31 & 3,600,000 & 1,800,000 \\\hline \text { Billings to the government during the year } & 4,600,000 & 1,400,000 \\\hline \text { Cash collected during the year } & & 3,600,000 \\\hline\end{array}$ Calculate the amount of income that should have been recognized in 2007.