On April 1, 2019, Pine Construction Company entered into a fixed-price contract to construct an apartment building for $6,000,000. Pine will satisfy the performance obligations in the contract over time and appropriately accounts for this contract. Information relating to the contract is as follows:

What is the amount of contract costs incurred during the year ended December 31, 2020?
a. $1,200,000
b. $1,920,000
c. $1,980,000
d. $2,880,000

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At December 31, At December 31, 2019 2020 Percentage of completion Estimated costs at completion Gross profit recognized (cumulative) 20% 60% $4,500,000 $4,800,000 $ 300,000 $ 720,000