Answer:
revenue recognized
2018 = $2,800,000
2019 = $4,500,000
2020 = $2,700,000
gross profit
2018 = $616,000
2019 = $990,000
2020 = $383,400
Explanation:
Percentage of                      2018              2019               2020
completion method
Cost incurred in                   $0          $2,184,000    $5,694,000
previous year
+ Cost incurred              $2,184,000 $3,510,000    $2,316,600
during the year
Total cost incurred        $2,184,000 $5,694,000    $8,010,600
+ Estimated cost to       $5,616,000  $2,106,000            $0
be incurred
Total estimated cost    $7,800,000 $7,800,000     $8,010,600
to be incurred
Percentage of                   28%               73%                  100%
completion
  
Total revenue        $10,000,000  $10,000,000    $10,000,000
Total revenue         $2,800,000    $7,300,000     $10,000,000
recognized (% of completion x total revenue)
- Revenue recognized       ($0)    ($2,800,000)    ($7,200,000)
in previous year    
= revenue recognized  $2,800,000   $4,500,000     $2,700,000
in current year
gain/loss                                2018                 2019          2020
Revenue                        $2,800,000  $4,500,000    $2,700,000
- Cost incurred             ($2,184,000) ($3,510,000)   ($2,316,600)
Gross profit                     $616,000     $990,000       $383,400