Benny Building, Inc. won a bid for a new warehouse building contract. Below is information from the project accountant. Total Construction Fixed Price $22,000,000 Construction Start Date June 13, 2012 Construction Complete Date December 16, 2013 As of Dec. 31 2012 2013 Actual cost incurred $9,500,000 $8,360,000 Estimated remaining costs $8,250,000 $- Billed to customer $11,000,000 $11,000,000 Received from customer $10,000,000 $9,000,000 Assuming Benny Building, Inc. uses the completed contract method, what amount of gross profit would be recognized in 2013?
a) $4,140,000
b) $1,865,352
c) $1,140,000
d) $2,215,775