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On 1 December 2019, Milo Ltd entered into an agreement with Castnet to develop a new computer controller (hardware and software) for Castnet. The agreement states that the total consideration to be paid for the system will be $1 360000. Milo Ltd expects that its total costs for the system will be $870000. As the end of its reporting period, 30 June 2020, Milo Ltd has incurred employee costs of $230000 and materials costs of $270000. Of the materials costs, $30000 relates to materials that have not yet been used on the system. Of the employee costs, $15000 is an advance payment to a subcontractor who had not performed their work on the project as at 30 June 2020. As at 30 June 2020, Castnet had made progress payments to Milo Ltd of $1 000000.

Milo Ltd calculates the measurement of progress using the input method in accordance with paragraph B18 of AASB 15/IFRS 15.

Required

Calculate the revenue to be recognised by Milo Ltd for the year ended 30 June 2020.

Answer: