Question

Cooper Construction Company had a contract starting April 2010, to construct a $9,000,000 building that is expected to be completed in September 2012, at an estimated cost of $8,250,000. At the end of 2010, the costs to date were $3,795,000 and the estimated total costs to complete had not changed. The progress billings during 2010 were $1,800,000 and the cash collected during 2010 was 1,200,000.
For the year ended December 31, 2010, Cooper would recognize gross profit on the building of:


a $405,000


b $0


c $316,250


d $345,000