company has a $16 million contract to construct a building. The company estimates $10.4 million in costs to construct the building and an expected gross profit of $5.6 million. During the current year, the company incurred $3.12 million of costs on the contract. The project is expected to be completed next year.

If the performance obligation is satisfied at a point in time, how much will company report as revenues in the current year?

If the performance obligation is satisfied at a point in time, how much will company report as expenses in the current year?