Tradel Construction Company entered into a contract to build a condominium building for

$1,800,000.

Construction commenced on July 1, 2020, with a planned completion date of December 31, 2022. A summary of the related accounting information is provided below:

	2020	2021	2022
Costs incurred during the year	$400,000	$500,000	$650,000
Estimated costs to complete at year-end	1,200,000	600,000	0
Billings during the year	360,000	440,000	1,000,000
Cash collections during the year	300,000	410,000	1,090,000

How much gross profit would be recognized in 2022 if Tradel uses the completed contract method?

A.

$250,000

B.

$220,000

C.

$0

D. 120,000