Kiner, Inc. began work in 2010 on a contract for $8,400,000. Other data are as follows:

2010 2011

Costs incurred to date $3,600,000 $5,600,000

Estimated costs to complete 2,400,000

Billings to date 2,800,000 8,400,000

Collections to date 2,000,000 7,200,000

If Kiner uses the completed-contract method, the gross profit to be recognized in 2011 is

		a. $1,360,000.
		b. $2,800,000.
		c. $1,400,000.
		d. $5,600,000