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Accounting Assignment

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Hubbard Building Company signed a contract with a customer on November 1, 2016. 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 $8.0 million. Hubbard estimated that the building would cost $5 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?

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