Question: On 1 January 2017, Romulus Ltd signed a contract worth $21 000 000 to construct a light rail from A to B. The light

On 1 January 2017, Romulus Ltd signed a contract worth $21 000

On 1 January 2017, Romulus Ltd signed a contract worth $21 000 000 to construct a light rail from A to B. The light rail was to be built over three years, with progress payments of $7 000 000 to be made at the end of each year. Estimated costs were $15 000 000 and the following costs incurred and paid by Romulus Ltd were in accordance with estimates and represented the percentage completed in each year: 2017: $8 000 000 2018: $5 000 000 2019: $2 000 000 The project was completed in December 2019. 1 Using the percentage of completion method, what profit would Romulus Ltd report in 2017?

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