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 Cost: Gross profit: 2020 2021 2020 2021 2020 2021 $3,000,000 1,200,000 600,000 800,000 400,000 1,500,000 1,500,000 Contract billings: ADH recognizes revenue upon completion of the contract In its December 31, 2020, balance sheet, ADH would report: Multiple Choice The contract asset, cost and profits in excess of billings, of $500,000