Windsor Construction Company uses the percentage-of-completion method of accounting, In 2014, Winsor began work on a contract it had received which provided for a contract price of $3,000,000.

Other details follow for 2014:

-Costs incurred during the year $1,400,000

-Estimated costs to complete as of December 31, 2014 $600,000

-Billings during the year $1,000,000

-Collections during the year $900,000

What should be the gross profit recognized in 2014?(show your work)

a) $700,000

b) $1,000,000

c) $1,400,000

d) $2,100,000