On 1 February 2020, Path Ltd entered into an agreement with Marcel Confectionary Ltd, a confectionary company, to build a new Double Arm Mixer to use to mix ingredients for Marcel Confectionary Ltd. The agreement states that the total consideration to be paid for the equipment will be $516000. Path Ltd expects that its total costs for the equipment will be $402000. As the end of its reporting period, 30 June 2021, Path Ltd had incurred labour costs of $78000 and materials costs of $216000. Of the materials costs, $36000 is in respect of materials that have not yet been used on the equipment. Of the labour costs, $15 000 is an advance payment to a subcontractor who had not performed their work on the project as at 30 June 202 As at 30 June 2021, Marcel Confectionary Ltd had made progress payments to Path Ltd of $300000.

Path Ltd calculates the measurement of progress using input methods in accordance with paragraph B18 of AASB 15/IFRS 15.

Required

1. Calculate the revenue to be recognised by Path Ltd for the year ended 30 June 2021

2. Prepare the journal entries to record the transactions described. Assume all of Path Ltds costs are paid for in cash
3. Calculate the profit earned by Path Ltd assuming the costs in respect of services not yet performed are deferred