In Early 2010, the Miami Company Signed a Contract for Construction

Multiple Choice

In early 2010, the Miami Company signed a contract for construction of an industrial park to be completed in three years.At that time, estimated total costs were $2, 250, 000, and estimated total revenues were $4, 000, 000.During 2010, Miami incurred costs of $960, 000 and collected $1, 100, 000.In December 2010, Miami recalculated total costs for the project to be $3, 200, 000 while estimated total revenues remained unchanged.What amount of profit (loss) should be recognized by Miami for 2010, using the percentage-of-completion method?

A) $266, 667 profit
B) $ 55, 000 loss
C) $240, 000 profit
D) $285, 000 loss