Indiana Co. began a construction project in 2013 that will provide it $164 million when it is completed in 2015. During 2013, Indiana incurred $36 million of costs and estimates an additional $82 million of costs to complete the project.

Suppose that, in 2014, Indiana incurred additional costs of $65 million and estimated an additional $54 million in costs to complete the project. Using the percentage-of-completion method, Indiana(Do not round your percentage calculated.):

rev: 12_28_2012, 01_16_2013, 02_14_2013_QC_26114

Recognized $8.17 million loss on the project in 2014.

Recognized $8.17 million gross profit on the project in 2014.

Recognized $11.17 million gross profit on the project in 2014.

None of these is correct.