Tullis Construction enters into a long-term fixed price contract to build an office tower for $10,500,000. In the first year of the contract Tullis incurs $3,000,000 of cost and the engineers determined that the remaining costs to complete the project are $5,000,000. Tullis billed $4,000,000 in year 1 and collected $3,400,000 by the end of the year. How much should Tullis report as Accounts Receivable at the end of year 1 on the balance sheet assuming the use of the completed - contract method? A. $7,400,000 B. $600,000 C. $4,000,000 D. $0