SureTight Company began work on a four year construction project on January 1, 2007 and uses the

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Question:

SureTight Company began work on a four year construction project on January 1, 2007 and uses the percentage of completion method. The contract price was $4,000,000 and estimated total costs were $3,600,000. During 2007, SureTight recorded $600,000 in billings, $450,000 in collections and $900,000 in costs. On January 1, 2008, SureTight revised its estimate of total costs to $4,180,000. Calculate the amount of loss to be recorded in 2008.

a. $180,000

b. $45,000

c. $60,000

d. $280,000