ABC Construction Company undertakes large-scale projects. Financial data for 2023 is detailed below:

Ledgers (in $ millions)	Amount
Contract Revenues	75.0
Construction Costs	50.0
General and Administrative Expenses	10.0
Depreciation Expense	5.0

Requirements:

• Prepare ABC Construction Company's income statement for the year ended December 31, 2023.
• Calculate the Gross Profit and Operating Income.
• Determine the Net Income after taxes using a tax rate of 30%.
• Analyze the impact of depreciation on ABC Construction Company's profitability.
• Discuss how contract variations affect project profitability and financial reporting.