Indiana Co. began a construction project in 2021 with a contractprice of $161 million to be received when the project is completedin 2023. During 2021, Indiana incurred $37 million of costs andestimates an additional $81 million of costs to complete theproject. Indiana recognizes revenue over time and for this projectrecognizes revenue over time according to the percentage of theproject that has been completed.
In 2022, Indiana incurred additional costs of $57 million andestimated an additional $40 million in costs to complete theproject. Indiana (Do not round your percentagecalculated):
A. Recognized $25.50 million gross profit on the project in2022.
B. Recognized $6.00 million gross profit on the project in2022.
C. Recognized $27.00 million gross profit on the project in2022.
D. Recognized $5.46 million gross profit on the project in2022.
