JRE2 Inc. entered into a contract to install a pipeline for a fixed price of $2,350,000. JRE2 recognizes revenue upon contract completion.
|
Cost incurred
|
Estimated Cost to Complete
|
|
2015
|
$ 270,000
|
$ 1,650,000
|
|
2016
|
1,700,000
|
600,000
|
|
2017
|
550,000
|
0
|
In 2016, JRE2 would report gross profit (loss) of:
a. $(270,000).
b. $(390,000).
c. $0.
d. $(220,000).