Question - Portsmith Co. signed an agreement to build a warehouse facility for $350,000. Construction began on July 1, 2014, and is expected to finish on December 31, 2016. Portsmith estimated that the warehouse would cost $300,000 to build.
On December 31, Portsmith had invested $80,000 in costs (salaries to workers, materials, etc.) into the project. The engineer overseeing the project estimated that it would cost another $230,000 to complete, and that the project would be finished by February 28, 2017. How much revenue should Portsmith recognize on its December 31, 2014, income statement?