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On 1 December 2019, Gstar Ltd entered into an agreement with Casio to develop a new computer controller (hardware and software) for Casio. The agreement states that the total consideration to be paid for the system will be $ 1 360 000. Gstar Ltd incurred employee costs of $ 230 000 and materials costs of $ 270 000. Of the materials costs, $30 000 relates to materials that have not yet been used on the system. Of the employees costs, $15 000 is an advance payment to a subcontractor who had not performed their work on the project as at 30 June 2020. As at 30 June 2020. Casio had made progress payments to Gstar Ltd of $ 1 000 000.
Required
Problem 1: Calculate the revenue to be recognized by Gstar Ltd for the year ended 30 June 2020
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