Assume the facts given in BE6.39 for Martin. Prepare the December 31, 2024 year-end journal entry to record any loss from the contract, assuming Martin uses the completed-contract method.

Data from in BE6.39

Inexperienced construction company Martin Corp. signed a risky non-cancellable contract to build a research facility at a fixed contract amount of $2 million. The work began in early 2023 and Martin incurred costs of $900,000. At December 31, 2023, the estimated future costs to complete the project totalled $900,000. During 2024, Martin ran into trouble with weather conditions and incurred the expected costs of $900,000 and estimated that it would need to spend an additional $300,000 to complete the project. During 2025, Martin reluctantly completed the project, incurring further costs of $350,000.