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. What is the journal entry in 2021 to record revenue? Multiple Choice 1,500,000 Accounts receivable Revenue from long-term contracts 1,500,000 Construction in progress Cost of construction Revenue from long-term contracts 400,000 600,000 1,000,000 O Cost of construction Gross profit Revenue from long-term contracts 2,000,000 1,000,000 3,000,000 Construction in progress Cost of construction Revenue from long-term contracts 1,200,000 1,800,000 3,000,000 Johnson sells $100,000 of product to Robbins, and also purchases $10,000 of advertising services from Robbins. The advertising services have a fair value of $8,000. Johnson should recognize total revenue to account for these events of: Multiple Choice $100,000 U O $98,000 O $92,000 d $90,000 On December 15, 2021, Rigsby Sales Co. sold a tract of land that cost $3,600,000 for $4,500,000. Rigsby appropriately uses the installment sales method of accounting for this transaction. Terms called for a down payment of $500,000 with the balance in two equal annual installments payable on December 15, 2022, and December 15, 2023. Ignore interest charges. Rigsby has a December 31 year-end. In 2022, Rigsby would recognize realized gross profit of: Multiple Choice $0. O O $450,000. O $300,000. o $400,000