Heineken

Co. began a construction project in 2019 at a total contract price of

$150 million.

The

project is scheduled for completion by 2021. During 2019, Heineken

incurred $36 million of

costs and estimates an additional $84 million of costs to complete the project. In 2020, Heineken

incurred costs of $58.5 million and estimated an additional $40.5 million in costs to complete the

project. Heineken

recognizes revenue on

all contracts

over time, as the project is being completed

by using the cost to cost approach.

_____ 13.In their 2020 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.