At the beginning of 20x1, Young Construction Company began construction on a $5.5 million bridge for the city. Young estimates the cost of the bridge at $5 million and it should take 3 years to complete. The actual costs incurred and progress payments received from the city are as follows:

Cost Incurred Progress Payments

20x1 $1,250,000 $1,000,000

20x2 $2,000,000 $1,750,000

20x3 $1,750,000 $2,750,000

What amount of profit should Young report for the year ended 20x2?

A) $150,000

B) $175,000

C) $200,000