Tullis Construction enters a long$-$term fixed price contract to build an office tower for

$"$$$10,000,000.$ In the fir st yea r of the contract Tullis incurs $$3,000,000$ of cost a nd the engineers determined that the remaining costs to complete are $$5,000,000.$ Tullis billed"

$"$$$4,000,000$ in year $1$and collected $$3,500,000$ by the end of the end of the yea r$."$

Refer to Tullis Corporation. How much gross profit should Tullis recogn ize in Year $1$

assum ing the use of the zero gross profit method?

a$.$ $$0$

b$."$$$1,000,000"$

c$."$$$2,000,000"$

d$."$$$8,000,000"$