3. During 2014, Gates Corp. started a construction job with a total contract price of $14,000,000. The job was completed on December 15, 2015. Additional data are as follows:

2014 2015

Actual costs incurred during the year $5,400,000 $6,100,000

Estimated remaining costs 5,400,000

Billed to customer 4,800,000 9,200,000

Received from customer 4,000,000 9,600,000

Under the completed-contract method, what amount should Gates recognize as gross profit for 2015? SHOW WORK PLEASE

a. $900,000

b. $1,250,000

c. $1,900,000

d. $2,500,000