The Company began work in year 1 on a contract for $21,000,000. Other data are as follows: Year 1 Year 2 Costs incurred to date $9,000,000 $14,000,000 Estimated costs to complete 6,000,000 Billings to date 7,000,000 21,000,000 Collections to date 5,000,000 18,000,000 Reference: Ref 18-5 If the Company uses the completed-contract method, the gross profit to be recognized in year 2 is O $7,000,000. $14,000,000