Question: Ailouros Construction, Inc., has consistently used the input method based on costs incurred to measure the progress toward completion of a project. During Year 1,

Ailouros Construction, Inc., has consistently used the input method based on costs incurred to measure the progress toward completion of a project. During Year 1, Ailouros started work on a $6 million fixed-price construction contract. The accounting records disclosed the following data for the year ended December 31, Year 1: Costs incurred Estimated costs to complete Accounts receivable Collections $1,860,000 4,340,000 600,000 1,400,000 How much loss should Ailouros have recognized in Year 1? A. $200,000 B. $60,000 C. $460,000 D. SO

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