During year 1, Fox Co. started a construction job with a contract price of $1,500,000. The job was completed in year 2 and the company uses the percentage of completion method. The following information is available for year 1 and year 2:

Year 1 Year 2

Cost incurred to date $350,000 $1,100,000

Estimated cost to complete 650,000 0

Billings to date 300,000 1,100,000

Collections to date 100,000 1,000,000

What amount of gross profit should Fox recognize for this job for year 2?

Group of answer choices

$400,000

$225,000

$325,000

$260,000