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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

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

A) $0.

B) $2,000,000.

C) $6,400,000.

D) $10,000,000.

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