In August 2010, a contractor who uses the percentage-of-completion method of accounting and the output method won a $21,000,000 contract to construct 200 miles of highway. The project was expected to last 20 months, take 800,000 hours to complete, and cost $20,000,000. The following data pertain to the construction period:
A. Costs to date – $4,000,000
B. Estimated costs to complete – $16,000,000
C. Labor hours incurred – 150,000
D. Estimated labor hours to complete – 650,000
E. Miles completed – 35
What amount of revenue should be recognized in 2010?
Select one of the following: