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Question 3 STS plc is a construction contractor which prepares financial statements to 31 May each year. The following information relates to a contract with a customer which began during the year to 31 May 2021 and which was still in progress on that date: E0OO Contract price 600 Costs incurred to date: Till 31 May 2021 190 To acquire materials for use in future work 30 Estimated further costs to completion 280 Invoiced customer thus far till 31 May 2021 175 Amounts received from customer 130 The contract is to be treated as a single performance obligation which is satisfied over time. The company measures the progress made on a contract by comparing the costs incurred for the work performed to date with the estimated total contract costs. Required: (a) Show how the contract should be reflected in the company's financial statements for the year to 31 May 2021. 15 Marks (b) How would the accounting treatment differ if the contract price was $480,000 but all the figures remained the same? 10 Marks Total 100 Marks