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.

In their 2020 income statement, Heineken would:

Group of answer choices

Recognized $15 million gross profit on the project.

Recognized $13.5 million gross profit on the project.

Recognized $6 million gross profit on the project.

Recognized $1.5 million gross profit on the project.