On the 1st of Jan 2018, ABC Company signed a contract with the government to build a bridge for total revenue of $1,000,000. the bridge is expected to be completed on 31st Dec 2020 with an expected $800,000 total cost. The expected and actual costs of the contract as follow:

the period 2018 2019 2020

actual cost to date 200,000 552,500 830,000

expected cost to complete 600,000 297,500 _ -

total cos 800,000 850,000 830,000

gross profit of 2020 is

Select one:

a. $72,500

b. $277,500

c. $350,000

d. $52,500