how to calculate annual gross profit of a company

Question

Kiner, Inc. began work in 2012 on a contract for $12,600,000. Other data are as follows

21022103

Costs incurred to date                                        $5,400,000       $8,400,000

Estimated costs to complete                               3,600,000

Billings to date                                                     4,200,000              12,600,000

Collections to date                                             3,000,000             10,800,000

If Kiner usesthe completed-contract method, the gross profit to be recognized in 2013 is

1. $2,040,000.
2. $4,200,000.
3. $2,100,000.
4. $8,400,000.