Problem VI: (4 points) In 2020, Tanner Corp. entered into a three-year contract to construct a building for a customer for a contract price of $500,000. The Company estimates the progress towards completion using the cost-to-cost method. Information related to the first two years of this contract is as follows: Costs incurred during the year Estimated costs to complete 2020 $ 64,000 180,000 2021 $ 116,000 270,000 Note: When estimating the percentage completion, the company rounds to the nearest tenth of a decimal (ex. 43.79432% = 43.8%) Question: How much profit (or loss) should be recognized in 2021? You must indicate whether your final answer is profit or loss. Answer: $ Calculations