In Year 1,a Contractor Agrees to Build a Building for $2,500,000

Multiple Choice

In Year 1,a contractor agrees to build a building for $2,500,000 by the end of Year 2.The builder's cost is estimated to be $1,800,000.The actual costs for Year 1 are $900,000 and Year 2's actual costs are $1,100,000.Under the percentage of completion method Year 1's gross profit is

A) $0.
B) $300,000.
C) $350,000.
D) $700,000.