Jacobs is a construction company. It began a long-term construction project in 2021. The buyer will pay a contract price of $160 million when the project is completed in 2023. During 2021, Jacobs incurred $37 million of costs and estimates an additional $81 million of costs to complete the project. Jacobs recognizes revenue over time for this project according to the percentage of completion. Jacobs:

Multiple Choice

• Recognized $79.00 million loss on the project in 2021.

• Recognized no gross profit or loss on the project in 2021.

• Recognized $13.17 million gross profit on the project in 2021.

• Recognized $37.00 million loss on the project in 2021.