IS1 . Beck Construction Company began work on a new building project on January 1 , LULU . The project is to be completed by December 31 , 2012 , for a fixed price of $108 million . The following are the actual costs incurred and estimates of remaining costs to complete the project that were made by Beck's accounting staff : Years Actual costs incurred in each year* Estimated remaining costs to complete the project ( measured at Dec . 31 of each year ) 2010 $30 million $60 million 201 1 $ 45 million $ 45 million 2012 $35 million $0 Required : What amount of gross profit ( or loss ) would Beck record on this project in each year under the percentage - of - completion method ? Place answers in the spaces provided below and show supporting computations . Years* Gross Profit ( or Loss ) recognized Supporting computations" 2010 201 1 2012