Question: WCM Builders enters into a contract to build a shopping mall in 2016 for $6,000,000. Completion of the mall is expected to take 2 years

WCM Builders enters into a contract to build a shopping mall in 2016 for $6,000,000. Completion of the mall is expected to take 2 years and cost WCM $3,600,000. Upon signing the contract, WCM receives $600,000. During 2016, WCM incurs costs of $1,200,000 and receives a $1,000,000 progress payment. WCM's forewoman estimates that the job is 50% complete at the end of 2016. How much income must WCM recognize in 2016 from work done on the mall?

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