Indiana Co. began a construction project in 2011 that will provide it $164 milli
ID: 2353145 • Letter: I
Question
Indiana Co. began a construction project in 2011 that will provide it $164 million when it is completed in 2013. During 2011, Indiana incurred $34 million of costs and estimates an additional $86 million of costs to complete the project. (Do not round your percentage calculated.)
Using the percentage-of-completion method, Indiana:
Recognized no gross profit or loss on the project in 2011.
Recognized $34.00 million loss on the project in 2011.
Recognized $12.47 million gross profit on the project in 2011.
Recognized $78.00 million loss on the project in 2011.
Explanation / Answer
Recognized $34.00 million loss on the project in 2011.