Khouri Construction Agreed to Build a Shopping Centre for $25,000,000

Multiple Choice

Khouri Construction agreed to build a shopping centre for $25,000,000 over the next four years. Estimated cost for years one through four are: $7,500,000; $5,000,000; $5,000,000; and $2,500,000. Estimated profit or loss for year one, assuming the percentage of completion method, would be

A) $(1,250,000) .
B) $0.
C) $1,250,000.
D) $1,875,000.