Rock Aerospace Company Signed a Contract on April 1, Year $\begin{array}{ll}\text { Year 4 } & \$ 5,600,000 \\\text { Year } 5 & \$ 11,200,000 \\\text { Year 6 } & \$ 5,600,000\end{array}$

Multiple Choice

Rock Aerospace Company signed a contract on April 1, Year 4, to build a satellite for $28,000,000.Estimated costs for the contract are:
$\begin{array}{ll}\text { Year 4 } & \$ 5,600,000 \\\text { Year } 5 & \$ 11,200,000 \\\text { Year 6 } & \$ 5,600,000\end{array}$
$\text { Assume that actual costs incurred coincide with expectations. Cash collections of the contract price are as follows: }$
$\begin{array}{ll}\text { Year } 4 & \$ 4,200,000 \\\text { Year } 5 & \$ 7,000,000 \\\text { Year 6 } & \$ 16,800,000\end{array}$ Refer to the Rock Aerospace Company example.Income from the contract for Year 5 under the percentage-of-completion method is:

A) $1,000,000
B) $1,400,000
C) $2,800,000
D) $3,360,000
E) None of the above