Indiana Co. began a construction project in 2011 that will provide it $165 million when it is completed in 2013. During 2011, Indiana incurred $32 million of costs and estimates an additional $87 million of costs to complete the project. (Do not round your percentage calculated.)
Using the percentage-of-completion method, Indiana:
a. Recognized $78.00 million loss on the project in 2011.
b. Recognized no gross profit or loss on the project in 2011.
c. Recognized $32.00 million loss on the project in 2011.
d. Recognized $12.37 million gross profit on the project in 2011.
Your tutorial is attached in excel showing the steps to work a percentage of completion method on long term contracts.