lexmark Co., a private company that reports under ASPE, was contracted by a provincial government to build a bridge over a river. The government owns the land on both sides of the river and it agreed to pay lexmark a fixed fee of $29,750,000 for the bridge. lexmark initially estimated the cost to build the bridge to be $21,500,000. lexmark year end is December 31. Work began under the contract on July 1, 2019 and was completed on September 30, 2021. Construction activities are summarized below by year:

Year	Construction costs incurred during the year	Estimated costs to complete (excludes already incurred costs	Progress billings during the year	Amount collected during the year
2019	$8,250,000	$13,000,000	$10,000,000	$12,000,000
2020	12,000,000	5,000,000	10,000,000	6,000,000
2021	5,250,000	0	9,750,000	11,750,000

Required:

1. Provide the journal entries that lexmark would have to record for each year of the bridge contract. Use costs to determine the percentage of completion each year. Show your calculations
2. Provide the balances that would be shown on the balance sheet and the income statement for this contract for each year.
3. Now assume that at the end of 2020 lexmark estimated that the cost to complete the bridge project was $10 million instead of $5 million. What journal entries would be required for 2020 and 2021?