problem 7 A large contract is to be completed in five stages. The completion stage at the end of an accounting period shows the present position. It is a fixed price contract without any escalation clause Actua Cost Contract Price Estimate Original Revised up- todate $ $ $ $ 1, Certified 60,000 64,000 62,000 80,000 2. Completed but not certified 20,000 22,000 21,000 30,000 3. Completed 75% 20,000 22,000 16,600 26,000 4, Completed 25% 40,000 48,000 12,400 60,000 5, Incomplete 24,000 30,000 1,64,000 1,86,000 28,000 1,12,000 2,24,0000 Evaluate the profit to be taken in the period if the contractor adopts (a) The percentage of completion method ; (b) The completed contract method. And show the work-in progress in the Balance Sheet, if $ 80,000 is received as final payment for completion of the first phase