Carla Vista Corp. designs and builds custom harvesting equipment for logging companies across Canada. The company, which is publicly traded, has a May $31$ year end. On February $18,2024,$ Carla Vista signed a contract with Pharoah Harvesting Ltd$.$ to design and build $25$ custom harvesters that can harvest wood at the steep grades found along many of the Pacific Coast timber stands included in Pharoah's harvesting leases. The following events took place in $2024$ in relation to the contract:

February $18$: Officials from Carla Vista and Pharoah sign the contract. The contract was for $$6\mathrm{.}8$ million. Carla Vista is to design, manufacture, and deliver the $25$ machines to Pharoah's operations centre in Duncan, British Columbia. Carla Vista's management estimates that the design component of the contract would be valued at $$524,000$ if contracted for separately, while the machine construction component of the contract would be valued at $$6\mathrm{.}7$ million if the machines were purchased separately. Carla Vista agrees to provide a three$-$year assurance$-$type warranty for the machines, and the company's management estimates that the warranty claims would total $$291,000$ based on past experience. Pharoah agrees to pay a $$1,610,000$ deposit within $10$ days of signing the contract and to pay the balance within $15$ days of the equipment being delivered.

February $25$: Pharoah pays the deposit specified in the contract.

March $28$: Carla Vista's engineering staff complete the equipment design and it is approved by officials from Pharoah.

May $18$: Carla Vista completes construction of the $25$ harvesters.

May $20$: The $25$ harvesters are loaded onto Carla Vista's trucks and are delivered to Pharoah's operation centre in Duncan later that day.

June $2$: Pharoah pays the balance owing on the contract.