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Ivanhoe Construction Co. uses the percentage-of-completion method. In 2018, Ivanhoe began work on a contract for $21000000; it was completed in 2019....

Ivanhoe Construction Co. uses the percentage-of-completion method. In 2018, Ivanhoe began work on a contract for $21000000; it was completed in 2019. The following cost data pertain to this contract:


 Year Ended December 31

  2018 2019

Cost incurred during the year $6600000 $5500000

Estimated costs to complete at the end of year 5100000 —



The amount of gross profit to be recognized on the income statement for the year ended December 31, 2019 is


$3653846.


$3800000.


$4053846.


$8900000.

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