Shaftesbury Construction Ltd owned a contract to build a swimming pool. The construction was scheduled for completion by 19 December 2022. One term of the contract stated that Shaftesbury Construction Ltd was to deduct 10,000 from the 6,000,000 total contract value for each week that completion was delayed. Completion was delayed by five weeks, which resulted in a 50,000 penalty. Shaftesbury Construction Ltd can estimate the outcome of the contract reliably only when a contract is at least 40% complete. Below are the data related to the costs, billings and cash receipts: In 000 Cumulative costs incurred to date Cost to be incurred (estimated at year-end) Cumulative billings invoiced Cumulative billings received Required: a. b. C. d. e. 2020 1,500 3,000 1,000 800 2021 3,220 1,380 2,500 2,300 2022 4,600 5,950 5,950 Calculate overall profit or loss on the contract estimated at the end of each (4 marks) year. Calculate contract's annual revenue, cost of sales and profit or loss recognized in the Income Statement for each year, using the percentage of completion method where appropriate. (6 marks) Show the accounting entries each year assuming costs incurred are paid in (9 marks) cash. Show the Balance Sheet amounts for Accounts receivable and Contract-in- progress accounts at the end of each year. Explain what the outstanding (9 marks) balance on the "Contract-in-progress account indicates. Accounting standards (IAS 11) allow companies to recognize profit before Discuss the rationale behind this a construction contract is completed. accounting treatment and why the requirements of accounting standards for (9 marks) inventories are not applicable to construction contracts.