Jerry's Engineering has a three-year contract to construct a large piece of capital equipment for its client. The contract price is $4 million. At the end of the first financial year of the project, material, labour, and overheads charged to the job totalled $850,000. Jerry estimates that a further $2.65 million will be required to complete the job. An independent evaluation has certified the value of the work completed as $850,000, which the client has paid under the contract as a progress payment. The profit that Jerry can recognize as having been earned in the current year is Select one: a. $500,000 b. $121,500 c. $331,250 d. None of the above