Little Co. enters into a long-term fixed price contract to build a warehouse for $30,000,000. In the first year of the contract, Little incurs $3,000,000 of cost and the engineers determined that the remaining costs to complete are $12,000,000. Little billed $10,000,000 in years 1 and collected $9,000,000 by the end of year 1. How much gross profit should Little recognize in Year 1 assuming the use of the percentage-of-completion method?