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

15. If Kiner uses the percentage-of-completion method, the gross profit to be recognized in 2010 is

		a. $1,440,000.
		b. $1,600,000.
		c. $2,160,000.
		d. $2,400,000.