Questions 7 and 8 are about the same contract.

Lou Malnati's Pizza contracts with Chi-Town Construction to build a new restaurant. It will take Chi-Town two years to build the restaurant. The contract price is $1.8 million. Chi-Town started construction on 1/1/2021.

The table below shows information for the two years under the contract.

Fiscal year	Construction costs incurred	Amounts billed to Lou Malnati's
12/31/2021	$700,000	$1 million
12/31/2022	$650,000	$800,000

Chi-Town management estimates the total cost of the contract to be $1.4 million as of 12/31/2021.

Assume for question 7 that the contract consists of a single performance obligation for delivery at the end of the contract.

Show what Chi-Town will report on its balance sheet and income statement accounts related to the contract for fiscal year 2021. Show your work.