Theo Corporation entered into a contract with Maddon Company to sell Maddon goods for $200,000. About a week later, Maddon ordered additional goods and the two companies agreed to a $50,000 price. The stand-alone price for the additional goods is typically $40,000. The two companies agreed to modify the original contract to include the additional goods at a total price of $250,000. Required: How should Theo account for the contract modification?
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