Question 7 (6 marks) Precision Construction Co. has agreed to build a 10 storey office building for MB Limited. The contract is for $10 million with progress payments being made by MB Limited as the construction proceeds. The construction begins in February 2018 and is completed in December 2020. Assume that MB Limited will own the office building over the period of construction and that Precision Construction Co. uses the percentage of completion method for construction contracts. Data on costs incurred, estimated costs to complete, progress billings, and progress payments over the period of construction are as follows. amounts are in $000's 2018 2019 2020 Costs incurred this period $1,040 $5,210 $1,563 Costs incurred to date 1,040 6,250 7,813 Estimated costs to complete the 6,960 1,562.5 project Progress billings this period 800 4,000 5,200 Progress payments received this 3,250 4,750 period 0 0 Required: Calculate the revenue to be recognized and gross profit (in dollars) for 2018 and 2019. Where applicable, round your percentages to the nearest whole percent 2018 2019