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Gleason Construction enters into a long - term fixed price contract to build an office building for $23,000,000. In the first year of the contract Gleason incurs $3,500,000 of cost and the engineers determined that the remaining costs to complete the project are $20,800,000. How much gross profit or loss should Gleason recognize in Year 1 assuming the use of the percentage - of - completion method? A. $187,243 loss B. $1,300,000 loss C. $0 D. $1,300,000 profit