Suppose that, in 2014, Indiana incurred costs of $63.75 million and estimated an additional $42.75 million in costs to complete the project. Using the percentage-of-completion method, Indiana:

Question

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The total estimated cost of the project is $63.75 million + $42.75 million = $106.5 million. If the revenue from the project is less than this total cost, a loss is recognized. Since the problem states a loss of $3.75 million, it implies that the revenue is $102.75 million, leading to a loss of $3.75 million ($102.75 million - $106.5 million).

Suppose That, in 2014, Indiana Incurred Costs of $63