Super Builders Company began its construction activities in 2017. At the end of its first years operations, the following projects (and other relevant information) are still uncompleted: Project Angeles City Palo City Contract price P15,000,000 P17,500,000 Billings thru 12/31 10,000,000 5,500,000 Collections thru 12/31 9,000,000 5,250,000 Actual cost thru 12/31 12,400,000 3,390,000 Est cost to complete 12/31 3,100,000 13,560,000 Super Builders will use the cost-to-cost percentage of completion in accounting for the Angeles City project, while cost recovery method will be used for the Palo City project Determine how (1) the Angeles City project and (2) the Palo City project will be shown on the year-end balance sheet.

A. (1) Inventory, P1,900,000, (2) Inventory, P1,210,000

B. (1) Inventory, P1,900,000, (2) Current liability, P2,110,000

C. (1) Current liability, P1,900,000, (2) Inventory, P1,210,000

D. (1) Current liability, P1,210,000, (2) Current liability, P1,210,000