Sahara Desert Homes (SDH) reports under IFRS and constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevant data are summarized below:

Contract amount		$	3,000,000
Cost:	2017		1,200,000
	2018		600,000
Gross profit:	2017		800,000
	2018		400,000
Contract billings:	2017		1,500,000
	2018		1,500,000

SDH uses the cost recovery method under IFRS to recognize revenue. What is the journal entry in 2017 to record revenue?

Multiple Choice

A.

Accounts receivable	1,500,000
Revenue from long-term construction contracts		1,500,000

B.

Accounts receivable	2,300,000
Gross profit		800,000
Revenue from long-term construction contracts		1,500,000

C.

Construction in progress	800,000
Cost of construction	1,200,000
Revenue from long-term construction contracts		2,000,000

D.

Cost of construction	1,200,000
Revenue from long-term construction contracts		1,200,000