QUESTION 2 [20 MARKS] James Construction Corporation is a private company but it elected to apply IFRS for its financial reporting. The company was contracted to construct a building for $1,650,000. James Construction Corporation initially estimated the cost of the building to be $1,300,000. The contract provided for progress payments. Furthermore, the contract stated that the title to the asset under construction rests within the customer, even though the asset is incomplete. James Construction Corporation's accounting year ends December 31. Work began under the contract on February 1, 20x4 and was completed on April 1, 20x6. Construction activities are summarized below by year: 20x4 20x5 20x6 Current cost $ 420,000 $ 530,000 $ 524,000 Estimated costs to complete 1,000,000 545,000 Progress billings to date 380,000 980,000 1,650,000 Cash collected to date 350,000 770,000 1,650,000 Required: a) Prepare James Construction Corporation's journal entries to record events for the years 20x4 and 20x5 only. (Rounding to the nearest whole number) (15 marks) b) Assuming the customer did not take control of the asset until the building was fully constructed and title transferred, how should James Construction Corporation recognize the revenue of the long-term construction? Provide a brief explanation of that approach (do not provide any journal entry) (5 marks) QUESTION 3 [15 MARKS] Beff Ltd. sells accounting software for a price of $20,000. To make the sale more attractive, Beff Ltd. offers to sell the software inclusive of a three-year service contract for $27,000. A comparable service contract is sold separately for $12,000. A customer approached Beff Ltd. with respect to the sale. A contract was signed on January 1,20x4 and the customer paid Beff Ltd. cash. Required: a) Assess the five steps for revenue recognition and determine when the performance obligation