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A construction company entered into a fixed-price contract to build an office building for $28 million. Construction costs incurred during the first year were $8 million and estimated costs to complete at the end of the year were $12 million.
How much revenue will appear in the company's income statement in the first year using the percentage-of-completion method? (Enter your answer in whole dollars.)
How much gross profit or loss will the company recognize in the first year using the percentage-of-completion method? (Enter your answer in whole dollars.)
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