Queensbridge Corp.started a contract in June 2017 to build a bridge at a fixed price of $45 million.The bridge was to be completed by October 2019 at a total estimated cost of $35 million.Total cumulative costs incurred by the end of December 2017 and 2018 were $7 million and $24 million,respectively.Because of cost overruns in 2018,it is now expected that the project will cost $5,000,000 more than originally estimated.Final costs at the end of the project totaled $36 million.Queensbridge Corp.follows the guidance in IFRS.
Required:
Determine the amount of gross profit to be recognized for the years ended December 31,2017 and December 31,2018.

Question

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The Answer of Queensbridge Corp.started a contract in June 2017 to build a bridge at a fixed price of $45 million.The bridge was to be completed by October 2019 at a total estimated cost of $35 million.Total cumulative costs incurred by the end of December 2017 and 2018 were $7 million and $24 million,respectively.Because of cost overruns in 2018,it is now expected that the project will cost $5,000,000 more than originally estimated.Final costs at the end of the project totaled $36 million.Queensbridge Corp.follows the guidance in IFRS.
Required:
Determine the amount of gross profit to be recognized for the years ended December 31,2017 and December 31,2018.