Black Sea Construction Company has a contract to construct a $6,000,000 oil rig at an estimated cost of $5,300,000. The contract is to start in July 2017, and the oil rig is to be completed in October 2019. The following data pertain to the construction period.

	2017	2018	2019
Costs to date	$1,325,000	$3,720,000	$6,300,000
Estimated costs to complete	3,975,000	2,480,000
Progress billings during the year	1,200,000	3,200,000	1,600,000
Cash collected during the year	1,000,000	2,340,000	2,660,000

What amount of gross profit (loss) should Black Sea recognize in 2018 using the percentage-of-completion method?

($900,000)

($295,000)

($200,000)

($375,000)