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		$2,955,000
Cost:	2015	1,190,000
	2016	590,000
Gross profit:	2015	785,000
	2016	390,000
Contract billings:	2015	1,477,500
	2016	1,477,500

AFH recognizes revenue upon completion of the contract.

What is the journal entry in 2016 to record revenue?

A.

Construction in progess	390,000
Cost of construction	590,000
Revenue from long-term contracts		980,000

B.

Construction in progress	1,175,000
Cost of construction	1,780,000
Revenue from long-term contracts		2,955,000

C.

Cost of construction	1,975,000
Gross profit	980,000
Revenue from long-term contracts		2,955,000

D.

Accounts receivable	1,477,500
Revenue from long-term contracts		1,477,500