Red Builders agrees to construct a new building for Blue Co. for a total contract price of $6,000,000. The estimated construction costs at inception was $4,000,000. The construction project was completed after two years. Below are the actual costs for years 1 and 2: Description Cost incurred to date Estimated costs to complete Billings Cash Collections Cumulative Year 1 1,200,000 Year 2 2,500,000 3,600,000 2,100,000 1,050,000 2,300,000 1,000,000 1,900,000 Red has determined that this contract qualifies for revenue recognition while the performance obligation is being met. As a result, Red Builders should have recognized profit at the end of year 1 in the amount of: A. $300,000 B. $600,000 C. $1,050,000 D. $1,000,000 A B