Sun City Limited commences construction of a multi-purpose water park on 1 July 2014 for Pretoria Limited. Sun City Limited signs a fixed-price contract for total revenues of $40 million. The project is expected to be completed by the end of 2017 and Pretoria Limited controls the asset throughout the period of construction. The expected cost as at the commencement of construction is S38 million. The estimated costs of a construction project might change throughout the project-in this example, they do change. The following data relates to the project (the financial years end on 30 June):

REQUIRED
Using the above data compute the gross profit to be recognized, for each of the three 6 years, assuming that the outcome of the c2ntract can be reliably estimated.

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2016 (Sm) 2015 2017 (S (Sm) т) Costs for the year Costs incurred to date Estimated costs to complete Progress billings during the year Cash collected during the year 10 18 28 12 40 10 28 12 12 20 19 18 20 11