Lichliter, Inc. is constructing a building for a client. The company began work in 2023 on a contract for $24,350,000. Other data are as follows:

	2023	2024
Costs incurred to date	$15,000,000	$23,000,000
Estimated costs to complete	7,500,000
Billings to date	8,000,000	24,350,000
Collections to date	6,500,000	22,500,000

Lichliter uses the completed-contract method, what gross profit should the company recognize in 2024?

Question 1 options:

a)	$1,350,000

b)

$116,667

c)	$22,500,000

d)	$24,350,000