Indiana Co. began a construction project in 2006 that will provide it $150 million when it is completed in 2008. During 2006, Indiana incurred $36 million of costs and estimates an additional $84 million of costs to complete the project.
Using the percentage-of-completion method, Indiana:
- Recognized no gross profit or loss on the project in 2006.
- Recognized $6 million loss on the project in 2006.
- Recognized $9 gross profit on the project in 2006.
- Recognized $36 million loss on the project in 2006.