Arizona Desert Homes (ADH) constructed a new subdivision during 2015 and 2016 under contract with Cactus Development Co. Relevant data are summarized below:

Contract amount		$2,550,000
Cost:	2015	1,100,000
	2016	500,000
Gross profit:	2015	650,000
	2016	300,000
Contract billings:	2015	1,275,000
	2016	1,275,000

ADH recognizes revenue upon completion of the contract.

In its December 31, 2015, balance sheet, ADH would report:

The contract asset, contract amount in excess of billings, of $1,275,000

The contract liability, billings in excess of cost, of $175,000

The contract asset, cost and profits in excess of billings, of $475,000

The contract asset, deferred profit, of $300,000