Shaw Company sells goods that cost $298,000 to Ricard Company for $446,000 on January 2, 2014. The sales price includes an installation fee, which is valued at $40,000. The fair value of the goods is $406,000. The installation is expected to take 6 months.

(b) Shaw prepares an income statement for the first quarter of 2014, ending on March 31, 2014. How much revenue should Shaw recognize related to its sale to Ricard?