Revenue Recognition (Liebestraum) (28 points) Franz Liszt Corp is a construction company which in 2020 entered into a contract to produce a music hall for $13,500,000. Construction will take three years. Over the course of construction, the following events took place: 2020 2021 2022 Costs incurred in Year $4,858,500 $4,258,500 $3,475,000 Anticipated Costs to Completion $7,650,000 $3,600,000 $0 Billings in Year $4,000,000 $4,000,000 $5,500,000 Cash Collections in Year $3,800,000 $3,500,000 $6,200,000 Using this information: Calculate Revenues and Gross Profit for each of the three years (6 points) Create the necessary journal entries for 2020 (8 points) Determine the value of any contract assets or liabilities established in 2020 (2 points) Instead now, imagine the following events took place over the construction of the asset: 2020 2021 2022 Costs incurred in Year $4,858,500 $4,258,500 $5,475,000 Anticipated Costs to Completion $7,650,000 $4,800,000 $0 Billings in Year $4,000,000 $4,000,000 $5,500,000 Cash Collections in Year $3,800,000 $3,500,000 $6,200,000 Create the necessary journal entries to recognize revenues only in each of the three years (12 points) Revenue Recognition (Liebestraum) (28 points) Franz Liszt Corp is a construction company which in 2020 entered into a contract to produce a music hall for $13,500,000. Construction will take three years. Over the course of construction, the following events took place: 2020 2021 2022 Costs incurred in Year $4,858,500 $4,258,500 $3,475,000 Anticipated Costs to Completion $7,650,000 $3,600,000 $0 Billings in Year $4,000,000 $4,000,000 $5,500,000 Cash Collections in Year $3,800,000 $3,500,000 $6,200,000 Using this information: Calculate Revenues and Gross Profit for each of the three years (6 points) Create the necessary journal entries for 2020 (8 points) Determine the value of any contract assets or liabilities established in 2020 (2 points) Instead now, imagine the following events took place over the construction of the asset: 2020 2021 2022 Costs incurred in Year $4,858,500 $4,258,500 $5,475,000 Anticipated Costs to Completion $7,650,000 $4,800,000 $0 Billings in Year $4,000,000 $4,000,000 $5,500,000 Cash Collections in Year $3,800,000 $3,500,000 $6,200,000 Create the necessary journal entries to recognize revenues only in each of the three years (12 points)