Question #4 (15 marks) A project begins in January, 2014; it is to be completed in October, 2016. The contract price is $12,000 and the estimated total cost of the project is $10,000. Additional data for the project is provided below: 2014 2015 2016 $3,000 $7,280 $ Costs To Date 10,400 Costs To Complete 3,120 7,000 Total cost (estimated) ,400 $10,00 $10,400 $10 Percentage of completion = (Costs to date)/(Estimated total cost) Required: a. Compute the gross profit recognized for each year. (3 marks) b. Prepare the underlying income statement for each year.(6 marks) c. Assume that in 2015, costs to complete are estimated at $5,120 instead of $3,120 so that the whole project is unprofitable. Compute the gross profit recognized for 2015. (3 marks) Prepare the underlying income statement for year 2015