22) Noah Construction Company is building a large complex for a contract price of $5,000,000 This is a three-year project and the requirements for recognizing revenue over time are met. The total estimated cost of the project is $4,000,000 and the following information is available: K$ in thousands) Costs incurred Estimated completion costs Billings Cash collected Year 1 $ 1,000 $ 3,000 $ 750 $ 500 Year 2 $ 1,500 $ 1,500 $ 1,750 $ 1,500 Year 3 $ 1,250 $ 0 $ 2,500 $ 3,000 Using the percentage-of-completion method of revenue recognition, how much income is recognized in Year 3? A) $375,000 B) $625,000 C) $1,000,000 D) $1,250,000