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 $2,000,000 of cost and the engineers determined that the remaining costs to complete the project are $6,000,000. Tullis billed $3,700,000 in year 1 and collected $3,500,000 by the end of the year. How much gross profit should Tullis recognize in Year 1 assuming the use of the percentage-of-completion method? (Round any intermediary percentages to the nearest hundredth percent, and round your final answer to the nearest dollar.) OA. $0 OB. $2,625,000 OC. $4,625,000 D. $625,000