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Regent Company entered into a contract with Star Hotel for constructing and installing a standard...

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Accounting

Regent Company entered into a contract with Star Hotel for constructing and installing a standard designed gym for a fixed price of $400,000. Nonrefundable progress payments are made on a monthly basis for work completed during the month. Legal title to the gym passes to Star upon completion of the building process. If Star cancels the contract before the gym construction is completed, Regent removes all the installed equipment, and Star must compensate Regent for any loss of profit on sale of the gym to another customer.
Should the seller recognize revenue over time or when the service is completed. Explain your answer using your textbook or other sources as a reference.

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