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JRE2 Inc

Accounting

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JRE2 Inc. entered into a contract to install a pipeline for a fixed price of $2,275,000. JRE2 recognizes revenue upon contract completion.

  Cost incurred  Estimated Cost to Complete

2020 $260,000  $1,600,000 

2021  1,650,000   550,000 

2022  500,000  

In 2021, JRE2 would report gross profit (loss) of: