(URGENT SOLUTION NEEDED)

Shah has entered into a 3 year contract which commenced on January 2019. The contract involves making a product which has no alternative use and the Shah is entitled to be paid for all the work and materials purchased to date. At December 2019 Shah has extracted the following information from its ledger Total Contract Value 140,000 Costs incurred up to 31st December 2019 Attributable to work completed 52,000 Inventory purchased for use in future years 8,000 60,000 Progress billings to date 45,000 Cash received 26,500 Other information Expected future costs to completion 48,000 At 31st December 2019, the contract was 40% complete. a) Explain if the Contract can be recognized using IFRS 15 Revenue recognition over time. (2 marks) b) What amounts will be shown on the statement of profit or loss and statement of financial position as of year end December 31, 2019. (5 marks)