Russell Ltd commenced the construction of a bridge on 1July 2013.It has a fixed-price contract for total revenues of $35million.The expected completion date is 30 June 2016.The expected total cost to Russell Ltd at the beginning of the project is $29 million.The following information relates only to the construction of the bridge:

\begin{array} { | l | r | r | r | } \hline \text { For the year ending } 30 \text { June } & \begin{array} { r } 2014 \\( \$ 000 )\end{array} & \begin{array} { r } 2015 \\( \$ 000 )\end{array} & \begin{array} { r } 2016 \\( \$ 000 )\end{array} \\\hline \text { Costs for the year } & 12000 & 18000 & 7000 \\\hline \text { Costs incurred to date } & 12000 & 30000 & 37000 \\\hline \text { Estimated costs to complete } & 19500 & 6300 & - \\\hline \text { Progress billings during the year } & 10000 & 12000 & 13000 \\\hline \text { Cash collected during the year } & 7000 & 10000 & 18000 \\\hline\end{array}

Russell Ltd uses the percentage-of-completion method based on cost to account for its construction contracts.What is the gross profit to be recognised in each of the 3 years (rounded to the nearest $000)?
A)

\begin{array} { | l | l | l | } \hline 2014 ( \$ 000 ) & 2015 ( \$ 000 ) & 2016 ( \$ 000 ) \\\hline 1333 & ( 2408 ) & 408 \\\hline\end{array}

\begin{array} { | l | l | l | } \hline 2014 ( \$ 000 ) & 2015 ( \$ 000 ) & 2016 ( \$ 000 ) \\\hline 1333 & ( 2408 ) & - 926 \\\hline\end{array}

\begin{array} { | l | l | l | } \hline 2014 ( \$ 000 ) & 2015 ( \$ 000 ) & 2016 ( \$ 000 ) \\\hline 1200 & ( 2314 ) & ( 1000 ) \\\hline\end{array}

\begin{array} { | l | l | l | } \hline 2014 ( \$ 000 ) & 2015 ( \$ 000 ) & 2016 ( \$ 000 ) \\\hline 1864 & 1477 & ( 5341 ) \\\hline\end{array}

IASB and FASB Initiated a Joint Project to Clarify the Principle

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