Agra Electronics Technology has a contract to develop a system for a customer for a total sales price of $45 million. The network will take an estimated three years to build, and total building costs are estimated to be $24 million. Agra recognizes long-term contract revenue using the input method and estimates the percentage complete based on expenditure incurred as a percentage of total estimated expenditures. At the end of year 1, Agra had spent 12 million, how much revenue will Agra recognize in Year 1?

7.5 million22.5 million15 million5.5 million