David Construction has agreed to build an addition for an office building for a contract price of $3,000,000. The period of construction is estimated to be three years. The contract is signed on January 1 of Year 1, and construction begins immediately. The building is completed on December 31 of Year 3. Data on costs incurred and estimated costs to complete over the period of construction follows: As of December 31 ($ thousands) Year 1 Year 2 Year 3 Costs incurred $600 $625 $675 Estimated costs to complete $1,000 $900 $0 Determine the profit or loss to be reported in Year 3 assuming the company recognizes revenue at the time the building is completed. A) $1,200,000 B) $1,100,000 C) $1,500,000 D) $1,400,000 E) None of these

David Construction has agreed to build an addition for an office building for a contract price of $3,000,000. The period of construction is estimated to be three years. The contract is signed on January 1 of Year 1 , and construction begins immediately. The building is completed on December 31 of Year 3. Data on costs incurred and estimated costs to complete over the period of construction follows: Determine the profit or loss to be reported in Year 3 assuming the company recognizes revenue at the time the building is completed. A) $1,200,000 B) $1,100,000 C) $1,500,000 D) $1,400,000 E) None of these