Basics of percentage-of-completion method

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Reference no: EM13143328

Indiana Co. began a construction project in 2006 that will provide it $150 million when it is completed in 2008. During 2006, Indiana incurred $36 million of costs and estimates an additional $84 million of costs to complete the project.

Using the percentage-of-completion method, Indiana:

a) Recognized $6 million loss on the project in 2011.

b) Recognized $36 million loss on the project in 2011.

c) Recognized $9 gross profit on the project in 2011.

d) Recognized no gross profit or loss on the project in 2011.

Reference no: EM13143328

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