Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevant data are summarized below:

Contract amount		$	2,640,000
Cost:	2017		1,120,000
	2018		520,000
Gross profit:	2017		680,000
	2018		320,000
Contract billings:	2017		1,320,000
	2018		1,320,000

ADH recognizes revenue upon completion of the contract. What is the journal entry in 2018 to record revenue?

Multiple Choice

• Accounts receivable	1,320,000
  Revenue from long-term contracts		1,320,000

• Construction in progress	320,000
  Cost of construction	520,000
  Revenue from long-term contracts		840,000

• Construction in progress	1,000,000
  Cost of construction	1,640,000
  Revenue from long-term contracts		2,640,000

• Cost of construction	1,800,000
  Gross profit	840,000
  Revenue from long-term contracts		2,640,000