Arizona Desert Homes (ADH) constructed a new subdivision during 2018 and 2019 under contract with Cactus Development Co. Relevant data are summarized below: Contract amount $3,000,000 Cost in 2018: $1,200,000 Estimated total costs to complete : $2,000,000 Billings in 2018: $1,500,000 ADH uses the percentage-of-completion method to recognize revenue. In 2018, ADH should report : Select one: A. The gross profit of $600,000. B. The gross loss of $200,000 C. Neither gross profit nor gross loss. D. The gross profit of $1,000,000