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Otto Inc. agrees to manufacture wheelbarrows for Deacon Company. Under the terms of the contract, Deacon Company will pay Otto Inc. a total of $95,000,
Otto Inc. agrees to manufacture wheelbarrows for Deacon Company. Under the terms of the contract, Deacon Company will pay Otto Inc. a total of $95,000, and Deacon Company can cancel the contract if it so chooses but must pay Otto Inc. for work completed. Otto Inc. believes that, if Deacon Company cancelled the contract, Otto Inc. could sell the wheelbarrows to another company and still make a profit. The manufacturing contract is expected to last six months, and as of December 31,2022 , the job is 50% complete. How much revenue should Otto Inc. recognize in 2022 for this contract? $20,000 $0 $95.000 $47.500
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