Question: . In year 1 a contractor agrees to build a building for $2,500,000 by the end of year 2. The builder's cost is estimated to

. In year 1 a contractor agrees to build a building for $2,500,000 by the end of year 2. The builder's cost is estimated to be $1,800,000. The actual costs year 1 are $900,000 and year 2's actual costs are $1,100,000. Under the percentage of completion method year 2's gross profit is A) $350,000. B) $500,000. C) $700,000. D) $150,000.

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