JRE2 Inc. entered into a contract to install a pipeline for a fixed price of $2,200,000. JRE2 recognizes revenue upon contract completion.

	Cost incurred			Estimated Cost to Complete
2017	$	250,000		$	1,550,000
2018		1,600,000			500,000
2019		450,000			0

In 2019, JRE2 would report gross profit (loss) of:

(A) $123,000

(B) ($100,000)

(C) $2,000

(D) $50,000

Answer rating: 100% (QA)

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