Multi-Storey Builders Ltd had a large three-year project with total revenue of $8 000 000 and estimated total costs of $6 500 000. The project was 20 per cent complete at the end of the first year, 70 percent complete at the end of the second year, and 100 percent complete at the end of the third year. Revenues and costs were as estimated.

1. What profit was earned during the first year if the percentage of completion method was used?

2. What profit was earned during the second year if the percentage of completion method was used?

3. What profit was earned during the third year if the percentage of completion method was used?

4. What profit was earned during the second year if the completed contract method was used?