XYZ Ltd signs a contract on 30 June 2015, agreeing to build a bridge for ABC Limited at a contract price of $40 million. XYZ Ltd estimates that construction costs will be as follows: ___________________________________________________ Year Ending Cost ___________________________________________________ 30 June 2016 $10 000 000 30 June 2017 $16 000 000 30 June 2018 $ 6 000 000 $32 000 000 The contract provides that ABC will make payments on 30 June of each year as follows: 2016 $8 000 000 2017 $20 000 000 2018 $12 000 000 $40 000 000 XYZ now estimates at the beginning of the 2017 financial year that construction costs will be as follows: _________________________________________________ Year Ending Cost ___________________________________________________ 30 June 2016 $10 000 000 30 June 2017 $21 000 000 30 June 2018 $15 000 000 $46 000 000 Required: Calculate: a) Percentage of completion for each of the three years. (4 marks) b) Revenue to be recognised in each of the three years. (3 marks) c) Gross profit/loss to be recognised in each of the three years. (3 marks)