QUESTION 4 In continuation of Question 3, now let us suppose that at the beginning of Year 2, the uncertainty has been removed. Both the parties agreed for a variation of $ 75,000 and a claim of $ 10,000. The contractor has incurred costs of $ 420,000 for year ended 2. Should it now apply stage of completion method for recognizing contract revenue? Meanwhile the customer has paid another $ 400,000. Estimated costs to complete the contract at the Year 3 end was $ 180,000. Material Index at the Year 2 end 1350 and it was expected to be at 1380 at the Year 3 end. a. How much of the revenue should be recognized at Year 2 end? b. How much profit should be recognized at Year 2 end? c. How much of the profit should be transferred to Contract Reserve? d. What was the Contract Receivables?