In its December 31, 2010 balance sheet, ADH would report:

Select one:

a. The asset, cost and profits in excess of billings, of $500,000.

b. The asset, deferred profit, of $400,000.

c. The liability, billings in excess of cost, of $300,000.

d. The asset, contract amount in excess of billings, of $1,500,000.

$3,000,000 1,200,000 600,000 800,000 400,000 1,500,000 Contract amount Cost Gross profit Contract 2010 2011 2010 2011 2010 billings 2011 1,500,000