QUESTION 1 (25 MARKS) Contract No. 12476 commenced during year 2017 and has a fixed contract price of RM900.000. During the year 2017, costs incurred for materials, wages and sub-contractors charges amounted to RM420,000. A plant costing RM78,000 was purchased during year 2017 specifically for contract No.12476. At the end of year 2017: i. The plant was valued at RM62,000. ii. Unused materials on site were valued at RM80,000. iii. It is estimated that further costs recognise RM290,000 would be incurred in order to complete the contract. The figure includes the appropriate cost of plant and sub- contractors in the future. iv. The progress billing was RM388,800. Required: a) Prepare the following: i Extract of the Statement of Profit or Loss for the year of 2017. ii. Extract of Statement of Financial Position for the year of 2017, assuming the entity recognised revenue based on cost to date bears to total cost. (13 marks) b) Prepare the following: i. Extract of the Statement of Profit or Loss for the year of 2017. ii. Extract of the Statement of Financial Position for the year of 2017, assuming the entity recognised revenue on the basis of value of work certified. The progress billing represents 90% of work invoiced. (12 marks)