In early 2019, Beertender Company entered into a long term contract to construct a bridge for Notsosober County for $10 million. The bridge will take three years to complete. In 2019, Beertender spent $2.8 million on the project, recognized $3.5 million in revenue and $.7 million in profit. In 2020, Beertender spent $4.2 million on the project, recognized $3.8 million in revenue and a $.4 million loss. Beertender billed Notsosober $3.0 million in 2019 and $4.5 million in 2020. Notsosober paid Beertender $2.6 million in 2019 and $4.3 million in 2020. Beertender Company recognizes revenue on all contracts over time, as the project is being completed by using the cost to cost approach.

_____ 10. When preparing its December 31, 2019 balance sheet, Beertender would report the following with regards to this contract:

A) Current Assets of $3.9 million, and Current Liabilities of $3.0 million.

B) Current Assets of $6.5 million, and no Current Liabilities.

C) Current Assets of $3.9 million, and no Current Liabilities.

D) Current Assets of $0.9 million, and no Current Liabilities.

_____ 11. When preparing its December 31, 2020 balance sheet, Beertender would report the following with regards to this contract:

A) Current Assets of $7.9 million, and Current Liabilities of $7.5 million.

B) Current Assets of $0.6 million, and Current Liabilities of $0.2 million.

C) Current Assets of $7.3 million, and Current Liabilities of $7.5 million.

D) Current Assets of $0.4 million, and no Current Liabilities.