2020 2021 Costs incurred during the year P1,200,000 P3,675,000 Estimated costs to complete, as of December 31 Billings during the year 3,600,000 1,350,000 5,400,000 Collections during the year 900,000...

Redsiam, Inc. began work in 2020 on contract #3814, which provided for a contract price of P7,200,000. Other details follow:

Extracted text: 2020 2021 Costs incurred during the year P1,200,000 P3,675,000 Estimated costs to complete, as of December 31 Billings during the year 3,600,000 1,350,000 5,400,000 Collections during the year 900,000 5,850,000 Assume that Redsiam uses the completed-contract method of accounting. The portion of the total gross profit to be recognized as income in 2021 is