CMA 0696 P2 Q2 - Revenue RecognitionDiamond Clover Construction Inc. uses the percentage-of-completion method of accounting. In year 1, the companybegan work on job #4115, with a contract price of $5,000,000. Other data are shown below.Year 1Year 2Costs incurred during the year $ 900,000 $2,350,000Estimated costs to complete2,700,000Billings during the year1,000,000 4,000,000Collections during the year700,000 4,300,000If Diamond Clover Construction Inc. were to use the completed-contract method of accounting, the total amount to berecognized as income in year 2 would be: