Use the Following Information for Problems -Under the Competed Contract Method of Accounting, How Much Profit

Multiple Choice

Use the following information for problems.
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:
$$\begin{array} { c c c } \text { Year } & \underline { \text { Payments } } & \text { Expenses } \\1 & \$ 400,000 & \$ 300,000 \\2 & \$ 1,200,000 & \$ 900,000 \\3& \$ 400,000 & \$ 550,000\end{array}$$
-Under the competed contract method of accounting, how much profit (loss) should Carbon recognize in years 1, 2, and 3 respectively?

A) $0, $0, $250,000
B) $0, $0, $400,000
C) $100,000, $300,000, ($150,000)
D) $75,000, $225,000, ($50,000)