QUESTION 1 (22 MINUTES, 11 MARKS) Watch It Inc. (WI) designs and manufactures luxury custom watches across Ontario and has a November 30-year-end. During the 2021 fiscal year, WI has signed a contract with Fashion & Style Ltd. to design and manufacture 50 custom watches. The contract price was $1,500,000, which includes the design and manufacturing of 50 custom watches. WI's management estimates that the design component of the contract would be valued at $125,000 while the manufacturing component of the contract would be valued at $1,650,000 if contracted separately. Upon signing the contract, Fashion & Style Ltd. paid a deposit of $150,000 (10%). The design component of the contract was completed and approved on October 1, 2021, whereas manufacturing of the watches began on October 15, 2021. As at November 30, 2021, WI's Management estimates that 45% of the watches have been completed. Required: Using the five-step model for revenue recognition, determine when and how much revenue Watch It Inc. would be able to recognize for the year-ended November 30, 2021. Round percentages to the nearest two decimal places. en we content of Mane Cole