QUESTION 2: EXERCISES Exercise 1 In January 1, 2015, Kuwait Finance House (KFH) and Kuwait International Bank (KIB) entered into three years Musharakah contract with Kuwait Real Estate Company (KRC) with capital contributions of KD 100,000, KD150,000, and 50,000, respectively. The agreed profit-sharing ratio between KFH and KRC is 2:3:1, respectively. The profit and losses from the contract are as follows: Year 2014 2015 2016 Profits (losses) (25,000) 10,000 (5,000) Required For each year: a) Determine the profit or losses attributable to KFH, KIB and KRC from the contract b) Determine the capital amount recovered by KFH, KIB and KRC c) Prepare the appropriate accounting entries at KFH