Answer:loss of $192,000
Explanation:
Fixed Price= $2,290,000
Cost Incurred=
2017=$262,000
2018=$1,660,000
2019= $510,000
Estimated Cost to Complete=
2017= $1,610,000
2018= $560,000
2019=0
In 2018;
first we add cost incurred from 2017 to 2018 to the estimated cost to complete for only 2018 giving us
$262,000 + $1,660,000 + $ 560,000 = $2,482,000
and then subtract it from fixed price;
$2,290,000- $2,482,000= -$192,000
ie $(192,000) gross loss.
