ABC Co. started work on a construction contract in 20x1. The contract price is P10M. However, the contractual agreement stipulates that if the cumulative inflation reaches or exceeds 26%, the contact price shall be adjusted upwards by 10%. Additional information on the contract is shown below: Costs incurred to date Estimated costs to complete Cumulative inflation rate 20x1 2,400,000 3,600,000 18% 20x2 4,500,000 1,500,000 27% 20. How much is the profit recognized in 20x2? a. 1,890,000 b. 1,980,000 c. 2,060,000 d. 2.150,000