Question: Indiana Co. began a construction project in 2011 that will provide it $150 million when it is completed in 2013. During 2011, Indiana incurred $36

Indiana Co. began a construction project in 2011 that will provide it $150 million when it is completed in

2013. During 2011, Indiana incurred $36 million of costs and estimates an additional $84 million of costs to

complete the project.

In 2012, Indiana incurred costs of $58.5 million and estimated an additional $40.5 million in costs to

complete the project. Using the percentage-of-completion method, Indiana recognized _______ on the

project in 2012.

A. $15 million gross profit

B. $6 million gross profit

C. $13.5 million gross profit

D. $1.5 million gross profit

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