Question: A $10,000,000 contract is executed to build a warehouse. Total estimated costs to complete the project are $7,500,000. The construction company incurred the following costs

A $10,000,000 contract is executed to build a warehouse. Total estimated costs to complete the project are $7,500,000. The construction company incurred the following costs during the project: $2,625,000 in 2019; $3,000,000 in 2020; and $1,875,000 in 2021.

How much income (revenue net of costs) would be recorded in fiscal year 2019 if the performance obligation is satisfied over time with cost as the measure of value transferred to the customer?

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