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6. JRE2 Inc. entered into a contrac t to install a pipeline for a fixed price of $2.200,000 JRE2 recognizes revenue upon contract completion. Estimated

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6. JRE2 Inc. entered into a contrac t to install a pipeline for a fixed price of $2.200,000 JRE2 recognizes revenue upon contract completion. Estimated Cost to Complete Cost incurred s 250,000 1,600,000 450,000 $ 1,550,000 2017 2018 2019 500,000 0 In 2018, JRE2 would report gross profit (loss) of: A) S(223,000) B) $(150,000) C) $(206,000) D) $0 7. Indiana Co. began a construction project in 2018 with a contract price of $150 million to receive when the project completed in 2020. During 2018, Indiana incurred $36 million of costs and estimates an additional $84 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 completed. Indiana: A) Recognized no gross profit or loss on the project in 2018. B) Recognized $6 million loss on the project in 2018. C) Recognized $9 million gross profit on the project in 2018. D) Recognized $36 million loss on the project in 2018. 8. Indiana Co. began a construction project in 2018 with a contract price of $150 million to receive when the project completed in 2020. During 2018, Indiana incurred $36 million of costs and estimates an additional $84 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 completed. In 2019, Indiana incurred additional costs of $58.5 million and estimated an additional $40.5 million in costs to complete the project. Indiana: A) Recognized $15 million gross profit on the project in 2019. B) Recognized $13.5 million gross profit on the project in 2019. C) Recognized $6 million gross profit on the project in 2019. D) Recognized $1.5 million gross profit on the project in 2019

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