At the beginning of 2009, Florida Road Construction entered into a contract to build a road for

the government. Construction will take four years. The following information as of 31 December

2009 is available for the contract:

Total Revenue according to the contract

$10,000,000

Total expected cost

$8,000,000

Cost incurred during 2009

$1,200,000

Question is: under the percentage completion method, how much revenue and income will the company report for the year 2006?