JRE2 Inc Entered into a Contract to Install a Pipeline for for a Fixed

question 66

Multiple Choice

JRE2 Inc. entered into a contract to install a pipeline for a fixed price of $2,200,000. JRE2 recognizes revenue upon contract completion.
- In 2018, JRE2 would report gross profit (loss) of:

• A) $(223,000).
• B) $(150,000).
• C) $(206,000).
• D) $0.