Answer:
Gross profit to be recognized = $196,140
Explanation:
                           Headland Inc.
Gross profit to be recognized by Headland at December 31, 2014 ending
Estimated contract cost                                                    $1,962,000
Fixed fee                                                                             $467,000
Total  $1,962,000+ $467,000)                                          $2,429,000
Total estimated cost                                                           $1,962,000
Gross profit ($2,429,000-  $1,962,000)                            $467,000
percentage of completion:( $829,900/1,962,000)              42%
Gross profit to be recognized: $467,000*42%               $196,140