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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

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).

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