Big Wheel Construction had the following two construction projects which began in year 1:

	Project 1	Project 2
Contract price	$690,000	$425,000
Costs incurred during year 1	200,000	225,000
Estimated costs to complete	400,000	225,000
Billed to customers during year 1	230,000	175,000
Received from customers during year 1	100,000	150,000

What amount of gross profit (loss) would Big Wheel report on its year 1 income statement?

Percentage of Completion

Completed Contract

A.

$17,500

$(12,500)

B.

$5,000

$(25,000)

C.

$5,000

$(12,500)

D.

$17,500

$(25,000)