Blues Construction Corp $\quad$ $\quad$ $\quad$ $\quad$

Blues Construction Corp. has consistently used the percentage-of-completion method. During 2020, Blues entered into a fixed-price contract to construct an office building for $ 6,000,000. Information relating to the contract is as follows: $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\underline{\text { At December } 31}$
$\begin{array}{c}\begin{array}{lll}\\\\\text {Percentage of completion}\\ \text {Estimated total cost at completion }\\\text {Gross profit recognized (cumulative) }\\\end{array}\begin{array}{r}\underline{2020} \\ 15 \% \\\$4,500,000 \\225,000 \end{array}\begin{array}{r}\underline{2021}\\45 \% \\\$ 4,800,000 \\540,000 \end{array}\end{array}$

Under the earnings approach, contract costs incurred during 2020 were

A) $ 1,440,000.
B) $ 1,485,000.
C) $ 1,575,000.
D) $ 2,160,000.