Question 6

Beta Inc. entered into an agreement to build a ship for $3,200 million and a reliable estimate of the projects total cost is $1,800 million. Project costs incurred by Beta Inc. are as follows:

Project Costs

Year	2014	2015	2016	Total
Cost incurred	$1,200 million	$600 million	$1200million	$3,000 million

Determine Betas net income from this project for each year using percentage-of-completion and completed contract methods. Also, show the yearly revenues and expenses. [3+3 = 6 marks]