Problem 3 The Freddy Construction Corporation (MCC) signed a $15 million contract in late 20x0 to build a road. Data on the contract is as follows: 20x1 $3,000,000 9,000,000 7,500,000 Costs incurred during year Expected costs to complete Billings 20x2 $6,500,000 5,000,000 20x3 $4,000,000 3,100,000 20x4 $3,200.000 7,500,000 Required - For each of the parts below, prepare the 'mini' income statement for the project for each year and calculate the net investment of the project that will be shown on the balance sheet at the end of each year. a. b. Freddy uses an input based approach to calculating the percentage of completion. Freddy uses an output based approach to calculating the percentage of completion and has calculated the percentages of completion as follows: 20x1 - 20% 20x2 -65% 20x3 -85% 20x4 - 100%