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		$	3,000,000
Cost:	2017		1,200,000
	2018		600,000
Gross profit:	2017		800,000
	2018		400,000
Contract billings:	2017		1,500,000
	2018		1,500,000

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

(A)

Cost of construction	2,000,000
Gross profit	1,000,000
Revenue from long-term contracts		3,000,000

(B)

Construction in progress	1,200,000
Cost of construction	1,800,000
Revenue from long-term contracts		3,000,000

(C)

Construction in progress	400,000
Cost of construction	600,000
Revenue from long-term contracts		1,000,000

(D)

Accounts receivable	1,500,000
Revenue from long-term contracts		1,500,000