LeBron Corp. signed a fixed-price $4,500,000 contract to construct a building. At the end of Year 1, LeBron had incurred $1,000,000 in total costs, and expected to incur $3,000,000 in additional costs to complete the building. By the end of Year 2, LeBron had incurred total costs to date of $3,000,000 and expected to incur $1,000,000 in cost to complete the building. How much profit should LeBron recognize in Year 2 under the percentage of completion method?

a. $125,000

b. $250,000

c. $375,000

d. $500,000

e. None of the above