RECOMMENDED!!Maitner Manufacturing agrees to manufacture
Maitner Manufacturing agrees to manufacture bumper cars for 12 Lenapi Amusement Parks. Under the terms of the contract, 12 Lenapi will pay Maitner a total of $60,000, and 12 Lenapi can cancel the contract if it so chooses but must pay Maitner for work completed. Maitner believes that, if 12 Lenapi cancelled the contract, Maitner could sell the bumper cars to another amusement park and still make a profit. The manufacturing contract is expected to last six months, and as of December 31, 2018, the job is 80% complete. How much revenue should Maitner recognize in 2018 for this contract?
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