A firm uses the completed contract basis for its long-term construction contracts and has a contract on which it has incurred costs of $250,000 in its first year. The firm estimates that it will spend an additional $600,000 to complete the contract. The customer will pay a total of $1.5 million in four equal annual installments. How much income should be recognized in the first year of the contract? A. $375,000. B. $441,176. C. No income should be recognized