Grandon Ltd Assuming Grandon Uses the Percentage-Of-Completion Method, Calculate the Gross Profit

Grandon Ltd. began work in 2006 on a contract for $5,400,000. Other data are: $\begin{array} { | l | l | l | } \hline & \mathbf { 2 0 0 6 } & \mathbf { 2 0 0 7 } \\\hline \text { Costs to date } & \$ 1,800,000 & \$ 4,300,000 \\\hline \text { Estimated costs to complete } & 2,700,000 & \\\hline \text { Billings to date } & 2,000,000 & 5,400,000 \\\hline \text { Collections to date } & 1,600,000 & 4,600,000 \\\hline\end{array}$ Assuming Grandon uses the percentage-of-completion method, calculate the gross profit to be recognized in 2006.