Romulus plc signs a contract on the $1$st July, $2019,$ agreeing to build a bridge for Rome Ltd at a contract price of $40$ million. Rome Ltd will be in control of the asset throughout the construction process. Romulus plc estimates that construction costs will be as follows:

Y$/$E Cost

$30/06/2010,000,000$

$30/06/2116,000,000$

$30/06/226,000,000$

The contract provides that ABC will make payments on $30$ June of each year, as follows:

$20208,000,000$

$202120,000,000$

$202212,000,000$

Assume that the contract is due to be completed on the expected completion date of $30$th June $2022.$ Actual costs and cash collections have coincided precisely with expectations, and the final payment has already been agreed at the full contract value.

Required:

$($a$)$ Calculate the income recognised each year

$($b$)$ Provide journal entries for each year assuming that the stage of completion and outcome of the contract CANNOT be reliably measured

$($c$)$ Provide the journal entries for each year if the points in $($b$)$ CAN be reliably measured