Rock Aerospace Company Rock Aerospace Company signed a contract on April 1, Year 4, to build a satellite for $28,000,000. Estimated costs for the contract are:

Year 4	$5,600,000
Year 5	$11,200,000
Year 6	$5,600,000

Assume that actual costs incurred coincide with expectations. Cash collections of the contract price are as follows:

Year 4	$4,200,000
Year 5	$7,000,000
Year 6	$16,800,000

Refer to the Rock Aerospace Company example. Income from the contract for Year 5 under the cost-recovery-first method is:

a.	$1,400,000
b.	$2,800,000
c.	$4,200,000
d.	None of the above