Tullis Construction enters into a long - term fixed price contract to build an office tower for $10,800,000. In the first year of the contract Tullis incurs $3,000,000 of cost and the engineers determined that the remaining costs to complete the project are $5,000,000. Tullis billed $4,000,000 in year 1 and collected $3,100,000 by the end of the end of the year. How should Tullis report Construction in Progress and Billings on Construction in Progress at the end of year 1 on the balance sheet assuming the use of the completed - contract method? A. asset of S1,000,000 B. liability of $1,000,000 C. asset of $900,000 D. liability of $900,000