[单选题]
Hood has a five-year construction contract that it accounts for using the percentage ofcompletion method, based on costs to date. The sales price of the contract is $5,000,000 andHood estimates the total cost of the contract to be $4,000,000. Hood incurred costs of$500,000 in year 1, costs of $1,000,000 in each of years 2 and 3, and costs of $750,000 ineach of years 4 and 5.What amount of profit would Hood recognise on the contract in year 4?
A .USD187,500
B .USD200,000
C .USD812,500
D .USD1,000,000
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