Builder Inc. enters into a contract to build a house for XYZ…
Builder Inc. enters into a contract to build a house for XYZ, Inc. on 4/1/2016 for $500,000. The terms of the contract requires that the building be completed by 3/31/2017, and offers a $50,000 bonus if the building is completed by 3/1/2017. Based on past experience, Builder Inc. is 65% confident that will be able to make the 3/1/2017 deadline and receive the bonus. Builder, Inc. records revenue evenly over the construction of the building. How much revenue will Builder Inc. record in 2016 related to this project?