Question 6: Percentage of Completion Method (14 marks) King Corporation started the construction of a building during 2017 at a contract price of $5,000,000. The contract to build was non-cancellable and they managed to complete the project in 2019 as anticipated. Billings are non- refundable and under the terms of the project, King sends billings to the vendor as revenues are earned. The following additional information is available: 2017 2018 2019 Costs to-date $ 800,000 $2,500,000 $4,800,000 Estimated costs to complete 2,400,000 2,500,000 0 Required: a. Calculate the amount of revenue to be recognized each year using the percentage of completion method. (2017, 2018 & 2019) b. Calculate the amount of gross profit/loss that should be recognized (2017, 2018 & 2019) each year using the percentage-of-completion method c. What is the amount of gross profit/loss that should be recognized each year under the completed-contract method