Exhibit 18-2 the Following Information Relates to a Project of the Sarasota

Multiple Choice

Exhibit 18-2 The following information relates to a project of the Sarasota Construction Company:
$\begin{array}{llll}&2010&2011&2012\\\text { Construction costs incurred } & \$ 136,000 & \$ 546,500 & \$ 200,000 \\\text { Estimated costs to complete } & 714,000 & 227,500 & --\end{array}$

The contract price was $1, 000, 000.Sarasota used the percentage-of-completion method of revenue recognition.
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Refer to Exhibit 18-2.What amount of gross profit was recognized in 2012?

A) $ 29, 375
B) $ 50, 000
C) $117, 500
D) $150, 000