In December 2016, Playtime Corp. signs a contract to construct a new playground for Surrey County for $2,460,000. Construction of the new playground begins in March 2017, and is expected to be completed in August 2018. At the signing of the contract, Playtime Corp. estimates that it would cost $1,750,000 to build the playground. At the end of 2017, Playtime Corp. reports the following updated information about the project:

	Costs incurred	Estimated costs
Year	to date	remaining
2017	$1,200,000	$600,000

If Playtime uses the percentage of completion to recognize revenue on the long-term contract, how much gross profit should Playtime recognize for the project in 2017?

$470,000

$410,000

$440,000

$500,000