Indiana Co. began a construction project in 2021 with a contract price of $163 million to be received when the project is completed in 2023. During 2021, Indiana incurred $39 million of costs and estimates an additional $81 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed. In 2022, Indiana incurred additional costs of $59 million and estimated an additional $36 million in costs to complete the project. Indiana (Do not round your percentage calculated):

Multiple Choice

• Recognized $4.00 million gross profit on the project in 2022.

• Recognized $27.50 million gross profit on the project in 2022.

• Recognized $7.23 million gross profit on the project in 2022.

• Recognized $29.00 million gross profit on the project in 2022.