It is June 22, 2020, the week before SC's year end. You meet with the chief nancial officer of SC to get an update on current developments and learn the following. SC acquires real estate in prime locations Where an existing theatre chain does not adequately serve the market. After acquiring a theatre site, the company engages a contractor to construct the theatre complex. During the year, the company received a $2 million payment from one such contractor who had built a 10-theatre complex for SC in Montreal. This payment represents a penalty for not completing the theatre complex on time. Construction began in June 2019 and was to have been completed by December 2019. Instead, the complex was not completed until the end of May 2020. The company is staging a Canadian version of \"Rue St. Jacques,\" which is to open in November 2020. The smash-hit musical has been running in Paris for three years and is still playing to sold- out audiences. SC started receiving advance bookings in November 2019, and the first 40 weeks of the show's run are completely sold out. Average ticket prices are $65; the show will play seven nights a week. The theatre used for the production is relatively small, with about 1,200 seats. As at June 22, 2020, SC had included in revenue $1.7 million of interest collected on the funds received from advance ticket sales. In addition to the substantial investment in advertising for this production ($4 million), the company will have invested $15 million in preproduction costs by November 2020 and will incur weekly production costs of $250,000 once the show opens