Show all your work. Answer part a and b. Thank you!!

Limerock Custom Builders was established in 1971 by Jon Rock and initially built high-quality customized homes under contract with specific buyers. In the 1990s. Rock's son joined the company and expanded Limerock's activities into industri.il and commercial retail markets. Upon the retirement of Limerock's long-time financial manager. Risk s son recently hired Flint, a former college friend, as the new controller for Limerock. Flint, has been associated with a public accounting firm for the last 6 years. Upon reviewing Limerock's accounting practices. Flint observed that Limerock followed the completed-contract method of rrvenue recognition, a carryover front the years when individual home building was the majority of Linterock's operations. Several years ago. the predominant portion of Limrock's activities shifted to the commerical retail and industrial building areas. From land acquisions to the completion of construction, most building contracts cover several years. Under the circumstances. Flint believes that Limeorck should follow the percentage-of-completion method of accounting. From a typical building contract, Flint developed the following data. Explain the difference between completed-contract revenue recognition and percentage-of-completion revenue recognition. Using tin- data provided for the Sunshine Mall and assuming the percentage-of-completion method of revenue recognition is used, calculate Limerock's revenue and gross profit for 2014. 201?, and 2016. under each of the following circumstances. Assume that all costs an- incurred, all billings to customers are made, and all collections from customers are received within 30 days of billing, as planned. Further assume that, as a result of unforeseen local ordinances and the fact that the building site was in a wetlands area, Limerock experienced cost overruns of 5800.000 in 2014 to bring the site into compliance with the ordinances and to overcome wetlands barriers to construction further assume that, in addition to the cost overruns of $800,000 for this contract incurred under part (b)(2), inflationary factors over and above those anticipated in the development of the original contract cost have mused an additional cost overrun of $900, 000 in 201? It is not anticipated that any cost overruns will occur in 2016