Platypus Building Inc. won a bid for a new office building contract. Below is info from the project accountant: Total Construction Fixed Price $8,000,000 Construction Sta

Platypus Building Inc. won a bid for a new office building contract. Below is info from the project accountant:

Total Construction Fixed Price                 $8,000,000    

Construction Start Date                            March 3, 2012

Construction Complete Date                    December 4, 2014      

                             

As of Dec 31…                             2012                            2013

Actual cost incurred  per year         2,000,000                 $1,000,000

Estimated costs to complete        $ 2,000,000 $1,000,000         

Billed to customer                        $2,400,000                 $5,300,000

Received from customer                $2,250,000                $5,400,000

                             

Assuming Platypus Building Inc. uses the percentage of completion method, what amount of gross profit would be recognized in 2013?

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