a) $59,634 b) $67,398 c) $68,033 d) $88,246 3. In early 20X1, Textron Inc. entered into an agreement with Scantech Ltd. for the construction of a new office building. Construction is expected to take three years to complete. The initial total estimated cost of the building was $28 million, and the price of the contract was set at $38 million. At December 31, 20X1, the total cumulative cost incurred was $18 million. Due to increasing costs of materials, the total estimated cost of the project at the end of 20X1 was $31 million. By the end of the 20X2 fiscal year, an additional $9 million of costs was incurred. At December 31, 20X2, the total estimated cost of the project remained the same as at December 31, 20X1. What amount should Textron recognize as gross profit (the profit element) for the December 31, 20X2, fiscal year? a) $2.0 million b) $3.2 million c) $4.0 million d) $6.1 million 4. On January 1, 20X3, Gaudreau Enterprises sold goods in exchange for a $200,000, five-year, interest- free note from the purchaser. The note was repayable at $20,000 semi-annually, first due June 30, 20X3. The market rate of interest for similar notes was 6% per annum, payable semi-annually. Gaudreau prepares its financial statements in accordance with IFRS. What amount of interest revenue should the company report on its December 31, 20X3, year-end financial statements? a) $ 9,790 b) $10,236 c) $10,390 d) $12,000 5. On July 1, 20X3, Clear Water Corp. received a $45,000, three-year, 6% note receivable from a customer for services performed. Interest is payable annually, with the first payment due on June 30, 20X4. The market rate for similar notes is 8%. Clear Water has a December 31 fiscal year end. How much interest revenue should Clear Water recognize in the December 31, 20X3, fiscal year? a) $1,350 b) $1,707 c) $2,700 d) $3,414