It has been suggested that singing releases stress and Karaoke is a perfect cure to all the pent-up emotions. Due to an increased number of stern students crying during Accounting exams, Firm Y was hired to construct a Karaoke room in KMEC. In 2020, Firm Y began construction work of the room under a three-year-contract. The contract price was $25,000. Firm Y uses the percentage-of-completion method based on costs incurred for financial reporting. Information related to this contract can be found on Firm Y's income statements at the end of 2020: Income Statement Construction Revenue Construction Expense Net Income Required: 1.1 5 points 1.2 8 points 1.3 2 points $5,000 $2,000 $3,000 What was the Total Initial Estimated Cost on this contract? In 2021, Firm Y incurred an additional $4,000 in construction cost. Firm Y also revised its total estimated cost on this contract to be $6,000 higher. What are Contruction Revenue, Construction Expense and Net Income for 2021? Explain why POC revenue is often regarded as "soft" revenue.