In 2010, Indiana Incurred Costs of $58

In 2010, Indiana incurred costs of $58.5 million and estimated an additional $40.5 million in costs to complete the project. Using the percentage-of-completion method, Indiana:

A) Recognized $15 million gross profit on the project in 2010.
B) Recognized $13.5 million gross profit on the project in 2010.
C) Recognized $6 million gross profit on the project in 2010.
D) Recognized $1.5 million gross profit on the project in 2010.The project is 70% complete after 2010 (i.e., $94.5 million costs to date/ $135 million estimated total costs) .The estimated gross profit is now $15 million (i.e., $150 million $135 million) , so gross profit to date is $10.5 million (70% $15 million) .$9 million was recognized in 2009, per question 102, so $1.5 million more is recognized in 2010.