Question 2

Sunshine Bhd. entered a contract to build a building for its customer with the agreed total price of $3,200,000. The project is expected to last for 3 years with the total cost of $1,600,000. The following table shows the progress of the work:

	31 Dec 2018	31 Dec 2019	31 Dec 2020
Completion (Market Value)	$950,000	$2,600,000	$3,200,000
Cost incurred to date	$400,000	$1,000,000	$1,600,000

Required:

1. For each year, compute the recognized profit based on input method.
2. For each year, compute the recognized profit based on output method.