The contract called for construction of a building to begin by December 31, 2016, and to be completed by December 31, 2017.
The contract price was $8.4 million. Hubbard estimated that the building would cost $5.4 million.
On November 15, 2016, the customer was required to make an advance payment of $1,000,000.
No work was done on the project until January 2017. How much income from the project should Hubbard report in 2016?