Highrise Constructions Ltd Had a Large 3-Year Project with Total

Multiple Choice

Highrise Constructions Ltd had a large 3-year project with total revenue of $5 000 000 and estimated total costs of $4 200 000. The project was 25% complete at the end of the first year, 55% complete at the end of the second year, and 100% complete at the end of the third year. Revenues and costs were as estimated.
-What profit was earned during the third year if the percentage of completion method was used?

A) $800 000
B) $440 000
C) $400 000
D) $360 000.