The question :

Builderama Ltd. is constructing a residential highrise in downtown Vancouver for a contract price of $10,000,000. Costs for this contract were initially estimated to be $7,000,000. The company uses the percentage of completion method of revenue recognition, using the cost-to-cost method of estimating the percentage complete The following information is available: a (Click the icon to review the contract data.) Requirements a. Compute the amount of gross prot to be recognized in each year. Show computations in good form. b. Compute the amount of revenue to be recognized in Year 2. 0. Prepare all the journal entries required in Year 2. [Hint four entries are required] d. Prepare the journal entry required in Year 3 to acknowledge completion and acceptance of the project. (Enter all amounts in thousands.) Requirement a. Compute the amount of gross prot to be recognized in each year. Show computations in good form. Determine the formula that will used to calculate the gross prot each year under the cost-to-oost method. Then enter the amounts to calculate the gross prot (loss) each year. (Abbreviations used: GP = Gross prot; GP prev recognized = Gross prot previously recognized. Do not round until your nal answer. Then round to the nearest whole dollar. Enter a \"0" for amounts with a zero balance. Use a minus sign or parentheses tor a loss.) = P I ( x ) G (\"5) 0 Data Table - X Year1 ( % x ) = Year2 ( % x ) =