At the beginning of 2009, Florida Road Construction entered into a contract to build a road for the government. Construction will take four years. The following information as of 31 December 2009 is available for the contract:
|
Total revenue according to contract |
$10,000,000 |
|
Total expected cost |
$8,000,000 |
|
Cost incurred during 2009 |
$1,200,000 |
Assume that the company estimates percentage complete based on costs incurred as a percentage of total estimated costs. Under the completed contract method, how much revenue will be reported in 2009?
A. None
B. $300,000
C. $1,500,000