x Ltd. (ILL) contracted to build a high-rise for $18,000,000. Construction began in 2005 and is expected to be for the years 2005 through 2007 are shown below 2005 2007 Costs incurred in year Estimated costs to Billing Cash collections $8,200,000 $6,200,000 $3,750,000 4,500,000 7,000,000 6,000,000 5,000,000 6,500,0006,500,0005,000,000 complete 6,000,000 Required: For percentage-of-completion accounting and for completed-contract accounting, show the gross profit or loss that should be recorded for 2005, 2006, and 2007. Journal entries are not required. Percentage of Completion Completed Contract 2005 2006 2007 Solution (000's) 2005 2006 2007 2,194 or 2,204 (3,094) 750 depending on rounding 750, 15 marks -carryforward where possible