Arizona Desert Homes (ADH) constructed a new subdivision during 2023 and 2024 under contract with Cactus Development Company. Relevant data are summarized below:

Contract amount $ 2,865,000Cost:20231,170,000 2024570,000Gross profit:2023755,000 2024370,000Contract billings:20231,432,500 20241,432,500

ADH recognizes revenue upon completion of the contract.

In its December 31, 2023, balance sheet, ADH would report:

the contract asset, deferred profit, of $370,000. the contract liability, billings in excess of cost, of $262,500. the contract asset, cost and profits in excess of billings, of $492,500. the contract asset, contract amount in excess of billings, of