1. ABC Ltd enters into a contract to construct a commercial building for a customer, expected to be completed in 5 years' time. The contract specifies consideration of $30 million and the company estimates that the average gross profit is $8 million, which is 40% of total building costs. ABC Ltd incurred costs of $4 million and $5 million in years 1 and 2 respectively. If the costs incurred provide an appropriate measure of contract progress, how much revenue should ABC Ltd recognize in year 2 ? A. $5 million B. $6 million C. $7.5 million D. $13.5 million