Question - The Pickle construction division was working on one project for the 2012 fiscal year. They use the percentage of completion revenue recognition method.
Contract for new administration building
Total Contract Amount $ 60,000,000
Contract Grant Date August 14, 2012
Construction Began September 1, 2012
Estimated Cost to Complete at beginning of contract $ 52,000,000
Estimated Time to Complete Project 2 years
As of Dec 31, 2012
Construction Costs incurred to date $ 14,140,000
Billings to date $ 19,500,000
Expected costs to complete $ 36,360,000
Calculate the revenue to be recognized in fiscal year 2012 for each division of pickle in accordance with generally accepted accounting principles. Show all calculations for full credit.