Build a Bridge Inc. prepares its financial statements in accordance with IFRS. The company started work on a contract in May $2023$ to build a small bridge at

a fixed price of $$10,000,000.$ The bridge was to be completed by September $2025$ at a total estimated cost of $$8,000,000.$ Total cumulative costs incurred by

the end of December $2023$ and $2024$ were $$2,000,000$ and $$5,500,000,$ respectively. Because of cost overruns in $2024,$ it is now expected that the project will

cost $$800,000$ more than originally estimated. Final costs at the end of the project totalled $$9,000,000.$

Required

Determine the amount of gross profit to be recognized for the years ending December $31,2023$ and $2024.$

First calculate the percent complete on December $31,2023.$

The percent complete on December $31,2023$ is $\%.$

Next calculate the total gross profit expected on the contract as of December $31,2023.$

Total gross profit expected on the contract:

Calculate the gross profit Build a Bridge Inc. will recognize for the year ended December $31,2023.$

The gross profit for the year ended December $31,2023$ is

Now calculate the percent complete on December $31,2024.$

The percent complete on December $31,2024$ is $\%.$

Calculate the total gross profit expected on the contract as of December $31,2024.$

Total gross profit expected on the contract:

Calculate the gross profit Build a Bridge Inc. will recognize for the year ended December $31,2024.$

The gross profit for the year ended December $31,2024$ is