Q6. Contract price: $9.5 million;

Year 6 Year 7 Year 8

Costs for the year $3,825,000 $4,675,000 $1,300,000

Estimated cost to complete $4,675,000 $1,270,000

Progress billing during the year $3,500,000 $4,100,000 $1,900,000

Cash collected during the year $3,100,000 $4,150,000 $2,100,000

(1) Using the percentage-of-completion method, determine the balance of construction in progress (CIP) at the end of year Year 7. [9 marks]

(2) Using the completed-contract method, determine the balance of construction in progress (CIP) at the end of year Year 7. [9 marks]