Question 4 (10 marks) Taajeer Construction specializes in the construction of commercial and industrial buildings. The company uses the percentage-of-completion method of revenue recognition. Progress towards completion is measured on a cost-to-cost basis. On 01/01/2015, Taajeer began work on a contract to construct a residential complex. On that date the contract Information were as follows: Contract price Estimated cost $4,000,000 3,000,000 At the end of 2015, the percentage of completion was calculated to be 35%. The billings during 2015 was $1,650,000, while cash collections were $550,000. The costs incurred during 2015 were $1,050,000. At the end of 2016, the following was the status of the contrac Billings during the year Costs incurred to date Latest forecast total cost COPY, SHARE OR $1,500,000 2,475,000 4,500,000 Required: For Taajeer Construction: a. Show the items (and their balances) that would appear in the Statement of Financial Position at 31/12/2015. b. Calculate the amount of revenue and gross profit (loss) that would be reported in relation to this contract at the end of 2016. DO