In 2020, Fargo Corporation began construction work under a three-year contract. The contract price is $7,200,000. Fargo uses the percentage-of-completion method for financial accounting purposes. The income to be recognized each year is based on the proportion of costs incurred to total estimated costs for completing the contract. The financial statement presentations relating to this contract at December 31, 2020, follow:

Balance Sheet

Accounts receivableconstruction contract billings $300,000

Construction in progress $900,000

Less: Progress billings ($720,000) $180,000

Income Statement

Income from Long Term Contract $180,000

How much cash was collected in 2025 on this contract?

A: $420,000

B: $300,000

C: $60,000

D: $720,000