On January 1, 2012, Hulk Co. enters into a contract with a customer to build a bridge on the customers land for $2,000,000. The construction of the bridge is expected to be completed at the end of 2014. Hulk recognizes revenue over time according to the percentage of completion. At contract inception, Hulk estimates that the expected total cost of construction will be $1,400,000. Below are the (1) actual costs incurred during each year, (2) expected costs to complete the construction, and (3) amounts billed to the customer:

	2012	2013	2014
Costs incurred each year	$600,000	$400,000	$500,000
Costs expected in the following years	$900,000	$562,500	0
Amounts billed to (and paid by) the customer each year	$550,000	$650,000	$800,000

What amount of revenue on this contract is recognized by Hulk in its 2014 income statement?

Group of answer choices

$720,000

$500,000

$800,000

$2,000,000