RE2 Inc. entered into a contract to install a pipeline for a fixed price of...

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Accounting

RE2 Inc. entered into a contract to install a pipeline for a fixed price of $2,200,000. JRE2
recognizes revenue upon contract completion.
Cost incurred
Estimated Cost to
Complete
2020 $ 250,000 $ 1,550,000
20211,600,000500,000
2022450,0000
In 2020, JRE2 would report (rounded to the nearest thousand) gross profit (loss) of:
A) $0.
B) $(100,000).
C) $56,000.
D) $73,000

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