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Facebook, a leading social media platform, has entered into a three-year advertising contract with a client. The contract, valued at $30,000,000, entails an upfront payment

Facebook, a leading social media platform, has entered into a three-year advertising contract with a client. The contract, valued at $30,000,000, entails an upfront payment of $8,000,000. Facebook recognizes revenue over time based on the accrual basis. In the first year, services equivalent to 40% of the total contract value were provided. Calculate the revenue recognized for the initial year under the accrual basis.

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