Answer:
Gross Profit in Year 1 = $200000
so correct option is B. $200,000
Explanation:
given data 
historical preservation project = $2,500,000
time = 2 year 
estimated costs = $2,000,000
Actual costs Years 1 = $800,000
Actual costs Years 2 = $900,000
to find out 
what amount of gross profit would Superior report in Year 1
solution
we find here first Percentage Completion that is express as 
Percentage Completion = Cost to date ÷  Estimated Total Cost  .............1
put her value we get 
Percentage Completion = 
Percentage Completion  = 40% 
and 
Revenue Recognized will be here 
Revenue Recognized = Percentage Completion  × Total estimated Revenue   ...............2
Revenue Recognized = 40 % × 25000000
Revenue Recognized = 1000,0000
so here Gross Profit in Year 1  will be  
Gross Profit in Year 1 = Revenue Recognized - Cost to date of year 1   ..............3
Gross Profit in Year 1 =   1000,0000 - v800000
Gross Profit in Year 1 = $200000
so correct option is B. $200,000