During Year 1, Mitchell Corp. started a construction job with a total contract price of $600,000. The job was completed on December 15, Year 2. Additional data are as follows: Year 1 Year 2 Actual costs incurred $225,000 $255,000 Estimated remaining costs 225,000 Billed to customer 240,000 360,000 200,000 400,000 Received from customer Under the U.S. GAAP completed contract method, what amount should Mitchell recognize as gross profit for Year 2? $45,000 $72,000 $80,000 $120,000