XYZ Ltd signs a contract on 30 June 2015, agreeing to build a bridge for ABC Limited at a contract price of $40 million. XYZ Ltd estimates that construction costs will be as follows:

 Year Ending                             Cost  

30 June 2016                          $10 000 000 

30 June 2017                           $16 000 000 

30 June 2018                           $ 6 000 000 

                                                   $32 000 000 

The contract provides that ABC will make payments on 30 June of each year as follows:

 2016                         $8 000 000

 2017                         $20 000 000 

2018                          $12 000 000 

                                   $40 000 000

 XYZ now estimates at the beginning of the 2017 financial year that construction costs will be as follows: 

Year Ending                                      Cost 

30 June 2016                                  $10 000 000 

30 June 2017                                  $21 000 000 

30 June 2018                                $15 000 000 

                                                        $46 000 000  

Required: Calculate: 

a) Percentage of completion for each of the three years. 

 b) Revenue to be recognised in each of the three years. 

 c) Gross profit/loss to be recognised in each of the three years