Gomez, Inc. began work in 2014 on contract #3814, which provided for a contract price of $14,400,000. Other details follow:

2014 2015

Costs incurred during the year $2,400,000 $7,350,000

Estimated costs to complete, as of December 31 7,200,000 0

Billings during the year 2,700,000 10,800,000

Collections during the year 1,800,000 11,700,000

40. Assume that Gomez uses the completed-contract method of accounting. The portion of the total gross profit to be recognized as income in 2015 is

a. $1,800,000.

b. $2,700,000.

c. $4,650,000.

d. $14,400,000.

Answer is C. Please show me the process.