Jones signs a three-year contract to construct a new office building for smith. The contract price is $3 million and estimated cost $2 million. For year one, Jones recognizes $1 million of revenue and $800,000 of cost. during year 2, Jones incurs $1.2 million in cost and estimates that during year 3 an additional $1:1 million will be necessary to complete the project. For year 2, jones will recognize a loss off:

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