Redwood Construction Company uses the percentage-of-completion method of accounting for long-term construction contracts. During 2021, Redwood began work on a $4,300,000 fixed-fee construction contract, which was completed in 2024.

	Cost Incurred	Estimated Additional Cost to Complete
2021	$800,000	$3,200,000
2022	$1,000,000	$2,200,000
2023	$936,000	$1,064,000

For the year 2023, Redwood should have recognized gross profit on this contract of:

A)500,000 B)300,000 C)225,00 D)135,000