Noah Construction Company is building a large complex for a contract price of $5,000,000. This is a three-year project and the requirements for recognizing revenue over time are met. The total estimated cost of the project is $4,000,000 and the following information is available: ($ in thousands) Costs incurred Year 1 Year 2 Year 3 $1,000 $1,500 $1,250 Estimated completion costs $3,000 $1,500 $ Billings $ 750 $1,750 $2,500 Cash collected $ 500 $1,500 $3,000 Which one of the following entries would be made in Year 1 to record the costs incurred assuming revenue is recognized over time? Multiple Choice A) DR Inventory: Construction in progress $1,000,000 CR Billings $1,000,000 B) DR Income on long-term construction contract $1,000,000 CR Accounts payable, cash, etc. $1,000,000 C) DR Inventory: Construction in progress $1,000,000 CR Income on long- term construction contract $1,000,000 D) DR Inventory: Construction in progress $1,000,000 CR Accounts payable, cash, etc. $1,000,000