State Co. recognizes construction revenue and expenses using the percentage-of-completion method. During year 1, a single long-term project was begun, which continued through year 2. Information on the project follows:

	Year 1	Year 2
Accounts receivable from construction contract	$100,000	$300,000
Construction expenses	105,000	192,000
Construction in progress	122,000	364,000
Partial billings on contract	100,000	420,000