Path Pavers began to resurface a 50 kin running/cycling trail in March 2011 under a fixed- price contract of $25 million. The trail is to be completed by May 2015 at a total estimated cost of $18 million. In the five years of the contract, Path Pavers completes 8, 12, 12, 12, and 6 km of the trail, respectively. Actual costs are immaterially different from original estimates. Path Pavers is a publicly traded company listed on the Canadian Venture Exchange.
Required:
Determine the amount of revenue Path Pavers should recognize in each of the five years of the contract.