Use the Information Below to Answer the Following Questions

question 1

Multiple Choice

Use the information below to answer the following questions:
Multi-Storey Builders Ltd had a large 3-year project with total revenue of $8 000 000 and estimated total costs of $6 500 000. The project was 20% complete at the end of the first year, 70% complete at the end of the second year, and 100% complete at the end of the third year. Revenues and costs were as estimated.
-What profit was earned during the second year if the percentage of completion method was used?

• A) $300 000
• B) $750 000
• C) $1 050 000
• D) $0.