Carbon Corporation Had a $2,000,000 Contract to Build a Small

Multiple Choice

Carbon Corporation had a $2,000,000 contract to build a small hospital with total costs estimated at $1,600,000.It received the following payments and incurred the following expenses over the three-year contract period:
Under the percentage-of-completion method, how much profit (loss) should Carbon recognize in year 3?

A) ($150,000)
B) ($50,000)
C) $150,000
D) $250,000