Bergeron Is a Local Manufacturer of Off- Shore Drilling Platforms

Bergeron is a local manufacturer of off- shore drilling platforms. This year, Bergeron entered into a contract to construct a drilling platform, which will be placed in the North Atlantic Ocean. The total contract price is $5,000,000, and Bergeron estimates the total construction cost at $2,000,000. Actual costs incurred this year are
$600,000. If Bergeron uses the completed contract method, the gross profit for this year is

A) $400,000.
B) $2,000,000.
C) $0.
D) $600,000.