Minty Inc Began Work in 2006 on Contract #3814, Which Provided

Minty Inc. began work in 2006 on contract #3814, which provided for a contract price of $4,500,000. Other details follow: $\begin{array}{|l|l|l|}\hline & 2006 & 2007 \\\hline \text { Costs incurred during the year } & \$ 800,000 & \$ 2,425,000 \\\hline \text { Estimated costs to complete as of December } 31 & 2,400,000 & 0 \\\hline \text { Billings during the year } & 900,000 & 3,600,000 \\\hline \text { Collections during the year } & 600,000 & 3,900,000 \\\hline\end{array}$ Assume that Blaze uses the percentage-of-completion method of accounting, calculate the portion of the total gross profit to be recognized as income in 2006.

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