(a) Gross profit recognized in:
| | 2004 | 2005 | 2006 | |||
| Contract price | | $1,500,000 | | $1,500,000 | | $1,500,000 |
| Costs: | | | | | | |
| Costs to date | $400,000 | | $935,000 | | $1,070,000 | |
| Estimated costs to complete | 600,000 | 1,000,000 | 165,000 | 1,100,000 | 0 | 1,070,000 |
| Total estimated profit | | 500,000 | | 400,000 | | 430,000 |
| Percentage completed to date | | 40%* | | 85%** | | 100% |
| Total gross profit recognized | | 200,000 | | 340,000 | | 430,000 |
| Less: Gross profit recognized in previous years | | 0 | | 200,000 | | 340,000 |
| Gross profit recognized in current year | | $ 200,000 | | $ 140,000 | | $ 90,000 |
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