42. Bergeron is a local manufacturer of off-shore drilling platforms. This year, Bergeron entered into a contract to construct a drilling platform, which will be placed in the North Atlantic Ocean. The total contract price is $10,000,000, and Bergeron estimates the total construction cost at $8,000,000. Actual costs incurred this year are $3,600,000. If Bergeron uses the completed contract method, the gross profit for this year is 1 A) $0. B) $2,000,000 C) $6,400,000 D) $10,000,000 a 43. Green Construction, a calendar-year taxpayer, starts a new long-term construction project in December that is expected to last about 18 months. The project is a mall. Because of some contingencies, it is difficult to estimate total costs this early in the project. Green can elect to defer income recognition under the modified percentage of completion method if costs I completed by year-end are less than A) 50% of the total estimated cost. B) 20% of the total estimated cost. C) 5% of the total estimated cost. D) 10% of the total estimated cost