During 2007, Eaton. Corp. started a construction job with a total contract price of $3,500,000. The job was completed on December 15, 2008. Additional data are as follows:

2007 2008

Actual Costs incurred: $1,350,000 $1,525,000

Estimated Remaining costs: 1,350,000 -----

Billed to customer: 1,200,000 2,300,000

Received from customer: 1,000,000 2,400,000

Under the completed-contract method, what amount should Eaton recgonize as gross profit for 2008?

a. $225,000

b. $312,500

c. $475,000

d. $625,000