2) On May 4 of the current year, Upward Construction Co., a calendar- year taxpayer, entered into a 3-year contract to build a skyscraper for $6 million. Expected costs are $4 million. Construction began on July 1 of the current year, and the architect certified that 30% of the project was completed as of December 31 of the same year. Upward incurred $1.2 million of costs pertaining to this contract during the current year. Using the percentage-of-completion method, what must Upward report as gross profit from the contract for the current year? A SO B $6,000,000 C $2,000,000 D $600,000