Monkey Business, an import business, builds special-orderyachts. They decide to build one for a customer for at a cost$2,500,000. It will take 2 years (they start building in June 1,2007) to build with total costs of $1,900,000: costs of $320,000 in2007; $1,200,000 in 2008; and the remainder in 2009 (assume theystick to budget). The customer puts a deposit down of $500,000 andpays the remainder in 4 installments, each due every 6 months. Foreach year (2007, 2008, and 2009) compute the revenue expense, andgross profits reported for this construction project. Assume theydo not have a written contract but based on this customer havingpurchased several yachts in the past, they believe he will pay forthe boat in a timely manner. Show all your work.

SAS Computers owns a patent on a computer processor. Theprocessor was developed and capitalized at a cost of €2,100,000 inthe beginning of 2015. It was expected to be economically usefulfor 7 years and have no residual value. At the beginning of 2018, anew processor was developed, making the old processor worth€900,000 (independent appraiser) with €200,000 total cost to sell.The present value of the processor’s future cash flows, given thedevelopment of the newer processor, is estimated to be €870,000. Atthis point, it is expected to have a useful life of 4 years with noresidual value. Is the processor impaired in 2018? If it isimpaired, prepare the to record the loss. Also prepare the journalentry for amortization in 2018. Show your work.