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Show all work On June 15, year 1, Automia Construction entered into a long-term construction contract to build a baseball stadium in Washington D.C. for
Show all work On June 15, year 1, Automia Construction entered into a long-term construction contract to build a baseball stadium in Washington D.C. for $218 million. The expected completion date is April 1, year 3, just in time for the year 3 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): Cost incurred during the year Estimated costs to complete as of 12/31 Year 1 $ 40 120 Year 2 $ 80 60 Year 3 $ 50 Required: Determine the amount of revenue, cost, and gross profit or loss to be recognized in each of the three years under IFRS, assuming that using the percentage-of completion method is not appropriate
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