use the information to answer the following questions

1. what is the total transaction price for the total contract?

2. what revenue should ACME recognize in the first year of the contract?

3. what profit or loss should ACME record on the contract above?

The following information is useful for questions 7 to 9: Acme Construction Co. develops large buildings. For one such building contract, Acme agrees to a price of $5,000,000. However, Acme will also receive a 10% bonus if it completes the contract within 3 years. Acme estimates the likelihood of completing the contract within 3 years at 50%. What is the transaction price for the total contract? (Acme uses the expected value method.) Question 8 (2 points) Continuing the question above (question 7), Acme expects the total costs of the project to be $5,500,000. Costs incurred in the first year equal $1,100,000. What revenue should Acme recognize in the first year of the contract? (Revenue on the contract should be recognized according to the cost-to-cost method) Question 9 (2 points) What profit or loss should Acme record on the contract mentioned above (in questions 7 and 8)? (If a profit, enter a positive number; if a loss, enter a negative number.)