Pacific Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000. The project was begun in 2019 and completed in 2020. Cost and other data are presented below: Costs incurred during the year Estimated costs to complete Billings during the year Cash collections during the year 2019 $450,000 1,050,000 400,000 300,000 2020 $1,100,000 0 1,400,000 1,500,000 Assume that Pacific recognizes revenue on this contract over time according to percentage of completion based on cost. Required: (a) According to the main theme of IFRS 15, explain the differences between contract assets, and contract liabilities. (4 marks) (b) Calculate the following amounts in each of the 2019 and 2020. (8 marks) (i) Total estimated profit of the contract (ii) Gross profit to be recognized for the year (c) Prepare all necessary journal entries for the year 2020 in relation to the following:- (8 marks) (i)To record contract costs (ii)To record progress billings (iii)To record cash collection (iv)To record revenue recognition