Use the Information Below to Answer the Following Questions

Multiple Choice

Use the information below to answer the following questions:
The percentage of completion profit for a particular project of Redgate Ltd was $200 000 for year 1 and $220 000 for year 2 (completion) .
-What difference would there be in profit for year 2 if the completion of production method were used?

A) Profit would be $200 000 higher.
B) Profit would be $200 000 lower.
C) Profit would be $220 000 higher.
D) Profit would be $420 000 higher.