During Year 1, Tidal Co. began construction on a project scheduled for completion in Year 3. At December 31, Year 1, an overall loss was anticipated at contract completion. What would be the effect of the project on Year 1 operating income under the U.S. GAAP percentage-of-completion and completed-contract methods? Percentage-of- Completion No effect No effect Decrease Completed-Contract No effect Decrease No effect Decrease Decrease