Encouraged by a prosperous 2020 season, Tim's Sheds Inc. bid on and was awarded a contract to build a parking garage for CNN Campus. The total contract price is $29,000,000. Construction is set to begin in November 2021 and completion is estimated to be August 2023 Tim estimates his profit on the job will be $2,000,000. Tim was able to negotiate an upfront payment of 5% of the contract, and he received that payment upon contract signing on November 1, 2021. During November and December, Tim spent $1,250,000 on the parking garage (all cash). During 2022, Tim spent SI4,000,000 in costs. He billed CNN $12,500,000 throughout the year, and at December 31 estimated that there was $12.500.000 in costs remaining to spend to complete the contract. Tim finished the job on time in August 2023, spending $12,400,000 during the year. Upon completion, he received the balance owing on the contract from CNN.

Required:

a) Using the percentage-of-completion method, calculate the profit Tim's Sheds recognized in 2021, 2022, and 2023.

b) What was the amount in the Contract Asset (or WIP) account at December 31. 2022?