On June $5,2011,$ Fremont Corporation signed a contract with Jackson Associates under which Jackson agreed $(1)$ to construct an office building on land owned by Fremont Corporation, $(2)$ to accept responsibility for procuring financing for the project and finding tenants, and $(3)$ to manage the property for $35$ years. The annual net income from the project, after debt service, was to be divided equally between Fremont Corporation and Jackson Associates. Jackson was to accept its share of future net income as full payment for its services in construction, obtaining finances and tenants, and management of the project. By May $31,2012,$ the project was nearly completed, and tenants had signed leases to occupy $90\%$ of the available space at annual rentals totaling $$4,000,000.$ It is estimated that, after operating expenses and debt service, the annual net income will amount to $$1,500,000.$ The management of Jackson Associates believed that $($a$)$ the economic benefit derived from the contract with Fremont should be reflected on its financial statements for the fiscal year ended May $31,2012,$ and directed that revenue be accrued in an amount equal to the commercial value of the services Jackson had rendered during the year, $($b$)$ this amount should be carried in contracts receivable, and $($c$)$ all related expenditures should be charged against the revenue.