Curtis Construction Company, Inc., entered into a fixed-price contract with Axelrod Associates on April 1, 2022 to construct a four-story office building. The contract called for a fixed contract price of $163 million to be received when the project is completed in 2024. During 2022, Curtis incurred $32 million of costs and estimates an additional $84 million of costs to complete the project. Curtis recognizes revenue over time according to the percentage of the project that has been completed. Curtis should: Multiple Choice

Recognize $32.00 million loss on the project in 2022.

Recognize $79.00 million loss on the project in 2022.

Recognize no gross profit or loss on the project in 2022.

Recognize $12.97 million gross profit on the project in 2022.