Bluegrass Builders Ltd $\text{Costs incurred to date}\ldots \ldots \ldots \ldots \ldots \ldots \ldots\ldots \ldots \$925,000$

Multiple Choice

Bluegrass Builders Ltd. Is using the completed-contract method for a $ 2,000,000 contract that will take two years to complete. Data at December 31, 2020, the end of the first year, are $\text{Costs incurred to date}\ldots \ldots \ldots \ldots \ldots \ldots \ldots\ldots \ldots \$925,000$
$\text{Estimated costs to complete}\ldots \ldots \ldots \ldots \ldots \ldots \ldots1,100,000$
$\text{Billings to date}\ldots \ldots \ldots \ldots \ldots \ldots\ldots \ldots \ldots \ldots \ldots\ldots 850,000$
$\text{Collections to date}\ldots \ldots \ldots \ldots \ldots \ldots\ldots \ldots \ldots \ldots 700,000$
The gross profit or loss that should be recognized for 2020 is

A) $ 50,000 gross profit.
B) $ 25,000 gross profit.
C) $ 25,000 loss.
D) $ 0.