In 2020, Crane Contractors began construction on an office building. The building was expected to cost $48,840,000 in total, and was expected to be completed in early 2022. The customer was to pay Crane $51,550,000 for the building. Crane was able to use percentage-of-completion accounting for the project, and at the end of 2020 had accumulated $12,210,000 in cost. Crane estimated that the costs to complete the construction were in line with the original expected total costs. During 2021, there was a lumber shortage, a strike by construction workers, and various other incidents that dramatically raised costs in the construction industry. As a result, at the end of 2021, Crane estimated that the office building would cost an additional $53,480,000 more than originally estimated. To the end of 2021, Crane had spent $40,644,800 on constructing the office building.

Calculate the revenue to be recognized by Crane for the 2021 fiscal year. Revenue to be recognized $

Prepare the journal entry to record revenue, construction expenses