Question: F. Scott Fitzgerald Construction Co. has a $60 million contract to construct a highway overpass and cloverleaf. The total estimated cost for the project is

F. Scott Fitzgerald Construction Co. has a $60 million contract to construct a highway overpass and cloverleaf. The total estimated cost for the project is $50 million. Costs incurred in the first year of the project are $9 million. F. Scott Fitzgerald Construction Co. appropriately uses the percentage-of-completion method. How much revenue and gross profit should F. Scott Fitzgerald recognize in the first year of the project?

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