At the beginning of 2006, 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 2006 is available for the contract:

Total revenue according to contract


Total expected cost


Cost incurred during 2006


Under the completed contract method, how much revenue will be reported in 2006?

a. None

b. $300,000

c. $1,500,000