Horner Construction Co. uses the percentage-of-completion

method. In 2018, Horner began work on a contract for

$22,000,000; it was completed in 2019. The following cost data

for the year-ended 2018 is as follows... Cost incurred during the

year: $7,800,000... Estimated costs to complete: $5,200,000. The

following cost data for the year-ended 2019 is as follows... Cost

incurred during the year: $5,600,000... Estimated costs to complete: n/a. The amount of gross profit to be recognized on the income statement for the year ended December 31, 2019 is

a. $3,200,000.

b. $3,440,000.

c. $3,600,000.

d. $8,600,000.