JRE2 Inc. entered into a contract to install a pipeline for a fixed price of $2,320,000. JRE2 recognizes revenue upon contract completion.

	Cost incurred			Estimated Cost to Complete
2020	$	266,000		$	1,630,000
2021		1,680,000			580,000
2022		530,000			0

In 2021, JRE2 would report gross profit (loss) of:

Multiple Choice

• $(256,000).

• $0.

• $(206,000).

• $(362,000).