Indiana Co. began a construction project in 2006 that willprovide it $150 millio

Indiana Co. began a construction project in 2006 that willprovide it $150 million when it is completed in 2008. During 2006Indianaincurred $36 million of costs and estimates an additional$84 million of costs to complete the project.Suppose that in 2007 Indiana incurred costs of $63.75 million andestimated an additional $42.75 million in costs to complete theproject. Using the percentage-of-completion methodIndiana:Recognized $3.75 million loss on the project in 2007.Recognized $5.25 million gross profit on the project in 2007.Recognized $7.5 million gross profit on the project in 2007.None of the above is correct