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 percentage-of-completion method and estimates percentage complete based on expentiture incurred as a percentage of total estimated expenditures. At the end of year 1 , Agra had spent 12 million. If at the end of Year 2, the accumulated spending is $16 million in total, how much revenue will Agra recognize in Year 2 ? 5.5 million 7.5 million 30 million 12.5 million