Q2. On December 31, 2015, Dieker Company sells equipment to Tabor Inc. for $62,500. Dieker includes a 1-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2015. Dieker estimates the prices to be $61,000 for the equipment and $1,500 for the cost of the warranty. Instructions (a) Prepare the journal entry to record this transaction on December 31, 2015. (b) Repeat the requirements for (a), assuming that in addition to the assurance warranty, Dieker sold an extended warranty (service type warranty) for an additional 2 years (20172018) for $1,000. Q3. Penner Builders contracted to build a high-rise for $28,000,000. Construction began in 2015 and is expected to be completed in 2018. Data for 2015 and 2016 are: Costs incurred to date Estimated costs to complete 2015 $3,600,000 14,400,000 2016 $10,400,000 9,600,000 Penner uses the percentage-of-completion method. Instructions (a) How much gross profit should be reported for 2015? Show your computation. (b) How much gross profit should be reported for 2016