Question 3 Penny's Construction has been contracted to build a small indoor skate park. The contract was signed in November and construction began in December. The total price for the contract is $12 million. The job was complete December 20X3. Penny has a December 31 year end. Accumulated costs to date 20X1 $ 1,400,000 Estimated costs to complete project 7,600,000 20X2 $ 5,600,000 7,000,000 20X3 $ 12,500,000 Customer billings to date Cash collected to date 1,000,000 5,200,000 12,000,000 800,000 3,000,000 10,500,000 Required: a) Calculate the amount of gross profit to be recognized each year using the percentage-of- completion method. b) Show how the details of this contract would be disclosed on the Statement of Financial Position and Statement of Financial Performance in 20X2.