Horner Surfacing Co. is in the road building business. In 2021, Horner began work on a contract with an agreed price of $22,000,000. The work was completed in 2022. The following cost data pertain to this contract

Year ending 12/31/2021 Year ending 12/31/2022 Cost incurred during the year $7,800,000 $5,600,000 Estimated costs to complete at 12/31 5,200,000 0 If the percentage of completion method of accounting was used, the amount of gross profit to be recognized for years 2021 and 2022 would be a. $5,400.000. $3,200,000. b. $8,600.000. $(400,000). C. SO. $8,600,000. d. so. $9,000,000