Indiana recognizes revenue

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Indiana Co. began a construction project in 2016 with a contract price of $161 million to be received when the project is completed in 2018. During 2016, Indiana incurred $31 million of costs and estimates an additional $88 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed. Suppose that, in 2017, Indiana incurred additional costs of $64 million and estimated an additional $55 million in costs to complete the project. Indiana (Do not round your percentage calculated):

Recognized $3.00 million loss on the project in 2017.

Recognized $3.97 million gross profit on the project in 2017.

Recognized $3.97 million loss on the project in 2017.

Recognized $6.97 million gross profit on the project in 2017.

Reference no: EM13912474

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