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Question 6: Percentage of Completion Method (11 marks)Flames Corp. contracted to build a bridge for $5,000,000. Construction began in2017 and was completed in 2018. Data relating to the construction are:2017 2018Costs incurred ………………………………………………………. $1,620,000 $1,400,000Estimated costs to complete ……………………………… 1,380,000 —Required:Using the percentage-of-completion method and the cost-to-cost basis, refer to BE6-30, E6-30, study guide E6-6 as a guide.a) How much revenue should be reported for 2017? Show your calculation.b) Prepare the journal entry to record progress billings of $1,700,000 during 2017.c) Prepare the journal entry to record the revenue and gross profit for 2017.d) How much gross profit should be reported for 2018? Show your calculation.