In spring 2015, Parmac Engineering Company signed a $1,000,000 contract with the city of Parkersburg, to construct a new city hall.

Parmac expects to construct the building within two years and incur expenses of $600,000.

Using the percentage-of-completion method how much revenue should Parmac recognize in 2015?

Construction costs incurred during the year	$174,000
Estimated costs to complete the contract	$426,000
Total costs	$600,000
Total contract price	$1,000,000