Arizona Desert Homes (ADH) constructed a new subdivision during 2020 and 2021 under contract with Cactus Development Co. Relevant data are summarized below:

Contract amount		$	2,820,000
Cost:	2020		1,160,000
	2021		560,000
Gross profit:	2020		740,000
	2021		360,000
Contract billings:	2020		1,410,000
	2021		1,410,000

ADH recognizes revenue upon completion of the contract. In its December 31, 2020, balance sheet, ADH would report:

A.) The contract asset, contract amount in excess of billings, of $1,410,000.

B.) The contract asset, deferred profit, of $360,000.

C.) The contract liability, billings in excess of cost, of $250,000.

D.) The contract asset, cost and profits in excess of billings, of $490,000.