3:23 1020 0 Tt I 9 B Problem 18-10 (Long-Term Contract with Interim Loss) On 1 March 2022, Paul Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,400,000. The building was completed by 31 October 2024. The annual contract cost incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2022, 2023 and 2024 are given below: Contract cost incurred during the year Estimated costs to complete the contract at 31/12 Billings to Fabrik during the year 2022 2023 $2,880,000 $2,230,000 3,520,000 2,190,000 3,200,000 3,500,000 2024 $2,190,000 0 1,700,000 Instructions: (a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognised as a result of this contract for the years ended 31 December 2022, 2023 and 2024. (b) Using the cost-recovery method, prepare schedules to compute the profit or loss to be recognised as a result of this contract for the years ended 31 December 2022, 2023 and 2024. 97%

On 1 March 2022, Paul Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,400,000. The building was completed by 31 October 2024 . The annual contract cost incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2022, 2023 and 2024 are given below: Instructions: (a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognised as a result of this contract for the years ended 31 December 2022, 2023 and 2024. (b) Using the cost-recovery method, prepare schedules to compute the profit or loss to be recognised as a result of this contract for the years ended 31 December 2022,2023 and 2024