Dalton Construction Company contracted to build a bridge for $8,000,000. Construction began in 2014 and was completed in 2015. Data related to the construction are:

                                                                                       2014                             2015

Costs incurred during the year                                    $2,640,000                  $2,200,000

Estimated costs to complete                                         2,160,000                                 0

Dalton uses the percentage of completion method of accounting.

Answer the following questions WITH SUPPORTING COMPUTATIONS:

How much revenue should be reported in 2014?

Make the entry to record progress billings of $3,300,000 during 2014.

Make the entry to record revenue, expense and gross profit for 2014.

How much gross profit should be reported for 2015?