Question 2 Denny's Construction has been contracted to build a trendy new shopping mall. The contract was signed August 15, 20X1 and construction began in September. The total price for the contract is $70 million and Denny has a mark-up of 40% (i.e. expects expenses to be $50 million). The job was complete December 20X3. Denny's has a December 31 year end. 20X1 20X2 20X3 Costs incurred in the period Estimated costs to complete project $ 5,000,000 45,000,000 Customer billings in the period $ 30,000,000 20,000,000 40,000,000 $ 16,000,000 Cash collected in the period 32,000,000 30,000,000 34,000,000 Required: a) Calculate the amount of gross profit to be recognized each year using the percentage-of- completion method. b) Prepare all required journal entries for each year.