Sandlewood Construction Incorporated recognizes revenue over…

Sandlewood Construction Incorporated recognizes revenue over time according to percentage of completion for its long-term construction contracts. In Year 1, Sandlewood began work on a $10,000,000 construction contract, which was completed in Year 2. The accounting records disclosed the following data at the end of Year 1: Costs incurred $ 5,400,000 Estimated cost to complete 3,600,000 Progress billings 4,100,000 Cash collections 3,200,000 How much gross profit should Sandlewood have recognized in Year 1?