Haft Construction Co. has consistently used the input method based on costs incurred to measure progress toward completion of the project. On January 10, Year 3, Haft began work on a $3 million construction contract. At the inception date, the estimated cost of construction was $2,250,000. The following data relate to the progress of the contract:

Gross profit recognized at 12/31/Yr 3	$ 300,000
Costs incurred 1/10/Yr 3 through 12/31/Yr 4	1,800,000
Estimated cost to complete at 12/31/Yr 4	600,000

In its income statement for the year ended December 31, Year 4, what amount of gross profit should Haft report?

$450,000

$300,000

$262,500

$150,000