On January 1, 2015, Niagara Constructions Inc. signed a contract for constructing a high-rise condominium complex with a client for $20 million over a period of three years. The costs of construction are estimated to be $14 million. On December 31, 2015, the company incurred $5 million of the costs. At the end of 2016, total expenses incurred amounted to $12 million.
Requirements
1. Determine the revenue to be recognized in both 2015 and 2016 using the percentage of completion method.