A construction company accepted a contract to build a bridge for $ 7,000,000. Construction activity began early in Year 1 and was concluded during Year 3. Information pertaining to the construction was as follows:

Costs As of Year-End Billings Collections Incurred Estimated Costs To During During Year DURING YEAR Complete Construction Year Year 1 $1,000,000 $3,000,000 $1,750,000 $1,500,000 2 2,000,000 2,000,000 2,450,000 2,000,000 3 3,000,000 -0- 2,800,000 3,500,000 Totals 6,000,000 7,000,000 7,000,000 The amount that would be shown on the balance sheet at the end of Year 2 for Construction in Progress in excess of Billings or Billings in excess of Construction in Progress for the Completed Contract method is:

Group of answer choices

$1,050,000 as a current asset

$3,000,000 as a long-term asset

$0

$1,200,000 as a current liability