(ii) Contract 2: Entity 4 entered a contract with a customer on 1 January 2020 with the following details:

	Contract
	000
Contract price	14,000
Cost up to 31 December 2020	4,000
Anticipated cost to completion	10,000
Percentage of completion	30%

Under the contract, Entity 4 would be delivering a custom-made defence system for the customer, and it has an enforceable right for payments to the cost incurred up to date for the customer.

During 2021, Entity 4 incurred a further 3,000,000 for the contract. Total invoice billed to the customer amount to 6m by 31 December 2021 of which 5,400,000 have been collected from the customer. The percentage of completion is 70% by 31 December 2021.

Question;

(ii) Show, with workings, how contract 2 should be recorded on the financial statements for 2020 and 2021.