Hello , i need to know how to calculate “Revenuefrom Long-Term Contracts” in part c . could you plea

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Hello , i need to know how to calculate   “Revenuefrom Long-Term Contracts” in part c . could you please demonstrate from where that 8,960,000 came? Thank you Ex. 18-126—Percentage-of-completion method. Penner Builders contracted to build a high-rise for $28,000,000.Construction began in 2014 and is expected to be completed in 2017.Data for 2014 and 2015 are:                                                                                                     2014              2015                Costs incurred todate                                               $3,600,000    $10,400,000            Estimated costs tocomplete                                     14,400,000        9,600,000 Penner uses the percentage-of-completion method. Instructions (a)   How much grossprofit should be reported for 2014? Show your computation. (b)   How much grossprofit should be reported for 2015? (c)   Make the journalentry to record the revenue and gross profit for 2015. Solution 18-126 (a)    $3,600,000          ————— ×$10,000,000 = $2,000,000          $18,000,000 (b)    $10,400,000          —————— ×$8,000,000 =   $4,160,000          $20,000,000          Less 2014 grossprofit            2,000,000          Gross profit in2015                 $2,160,000 (c)    Construction inProcess………………………………………………………..2,160,000          ConstructionExpenses…………………………………………………………6,800,000                     Revenue from Long-Term Contracts……………………………                      8,960,000 . . .

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