Long Company Entered into a Contract to Build an Office

Long Company entered into a contract to build an office building for $9,000,000. fte project is expected to be completed in two years at an estimated total cost of $6,000,000. Actual expenses incurred in each year were $2,000,000 and $3,000,000. fte income reported by Long Company for the first year would be:

A) $0 under the percentage-of-completion method and $0 under the completed- contract method
B) $1,000,000 under the percentage-of-completion method and $0 under the completed-contract method
C) $1,500,000 under the percentage-of-completion method and $0 under the completed-contract method
D) $2,500,000 under the percentage-of-completion method and $0 under the completed-contract method