Inexperienced construction company Martin Corp. signed a risky non-cancellable contract to build a research facility at a fixed contract amount of $2 million. The work began in early 2023 and Martin incurred costs of $900,000. At December 31, 2023, the estimated future costs to complete the project totalled $900,000. During 2024, Martin ran into trouble with weather conditions and incurred the expected costs of $900,000 and estimated that it would need to spend an additional $300,000 to complete the project. During 2025, Martin reluctantly completed the project, incurring further costs of $350,000. Calculate the amount of gross profit or loss that should be recognized each year under the percentage-of-completion method, and prepare the December 31, 2024 year-end journal entry to record costs, revenues, expenses, and losses from the contract. Round the percentage complete to four decimal places.

Inexperienced construction company Martin Corp. signed a risky non-cancellable contract to build a research facility at a fixed contract amount of $2,000,000. The work began in early 2023 and Martin incurred costs of $900,000. At December 31, 2023, the estimated future costs to complete the project totalled $900,000. During 2024, Martin ran into trouble with weather conditions and incurred the expected costs of $900,000 and estimated that it would need to spend an additional $300,000 to complete the project. During 2025, Martin reluctantly completed the project, incurring further costs of $350,000. Prepare the December 31, 2024 year-end journal entry to record any loss from the contract, assuming Martin uses the completedcontract method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry.)