Question: Indiana Inc. entered into a contract to construct a building in three years for a fixed price of $2,200,000. Indiana recognizes revenue upon contract completion.

Indiana Inc. entered into a contract to construct a building in three years for a fixed price of $2,200,000. Indiana recognizes revenue upon contract completion. Cost incurred in 2015 is $250,000 and estimated cost to complete is $1,550,000. Cost incurred in 2016 is $1,600,000 and estimated cost to complete is $573,000. In 2016, Indiana would report (rounded to the nearest thousand) gross profit (loss) of: A. $(206,000). B. $(223,000) C. $0. D. $(150,000) E. None is correct

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