Heineken Co. began a construction project in 2014 at a total contract price of $150 million.The project is scheduled for completion by 2016. During 2014, Heineken incurred $36 million of costs and estimates an additional $84 million of costs to complete the project.In 2015, Heineken incurred costs of $58.5 million and estimated an additional $40.5 million in costs to complete the project. Heineken uses the percentage-of-completion method to account for its projects.

_____12.In their 2014 income statement, Heineken would:

A)Recognized no gross profit or loss on the project.

B)Recognized a $6 million loss on the project.

C)Recognized $9 million gross profit on the project.

D)Recognized $36 million loss on the project.

_____ 13.In their 2015 income statement, Heineken would:

A)Recognized $15 million gross profit on the project.

B)Recognized $13.5 million gross profit on the project.

C)Recognized $6 million gross profit on the project.

D)Recognized $1.5 million gross profit on the project.

_____ 14.Assume that Heineken incurred costs of $63.75 million in 2015 and estimated it would cost an additional $42.75 million to complete the project. In their 2015 income statement, Heineken would:

A)Recognize a $3.75 million loss on the project.

B)Recognize a $5.25 million gross profit on the project.

C)Recognize a $7.5 million gross profit on the project.

D)Recognize no gross profit or loss on the project.