Mann Construction Co. uses the percentage-of-completion method of accounting. During 20X5, Mann contracts to build an apartment complex for Dan for $30mn. Mann estimates that total costs would amount to $22mn over the period of construction.
In connection with this contract, Mann incurs $3mn of construction costs during 20X5. Mann bills and collects $4mn from Dan in 20X5.
What amount should Mann recognize as gross profit for 20X5?
A.	$4,000,000
B.	$3,000,000
C.	$1,000,000
D.	$1,090,909
Fam Construction Company's contract requires the construction of a bridge in three years. The expected total cost of the bridge is $3mn, and Frame will receive $3.80mn for the project. The actual costs incurred to complete the project were $800,000, $900,000, and $1,300,000, respectively, during each of the three years. Progress payments received by Frame were $1,000,000, $1,200,000, and $1,600,000 in each year, respectively. Assuming that the percentage-of-completion method is used, what amount of gross profit should Frame report during the last year of the project?
A.	$800,000
B.	$586,667
C.	$346,667
D.	$453,333