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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
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$(256,000).
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$0.
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$(206,000).
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$(362,000).
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