the costs incurred are consistent with the estimate that the project is 40 completed 584477

Sandoval, Inc. signed a $40 million contract to build a new office building. The company expected that the project would take about two and one half years. During the first year, the company incurred the following costs:

At the end of the first year, management is very pleased with its construction to date. The costs incurred are consistent with the estimate that the project is 40% completed. Determine the amount of (a) revenue and (b) expense that the builder should report on its income statement at the end of the first year.