Use the following information to answer questions

In early 2014, Beertender Company entered into a long term contract to construct a bridge for Notsosober County for $10 million. The bridge will take three years to complete. In 2014, Beertender spent $2.8 million on the project, recognized $3.5 million in revenue and $.7 million in profit. In 2015, Beertender spent $4.2 million on the project, recognized $3.8 million in revenue and a $0.4 million loss. Beertender billed Notsosober $3.0 million in 2014 and $4.5 million in 2015. Notsosober paid Beertender $2.6 million in 2014 and $4.3 million in 2015. Beertender Company uses the percentage of completion method to account for all contracts.

1.) When preparing its December 31, 2014 balance sheet, Beertender would report the following with regards to this contract:

1. A)Current Assets of $3.9 million, and Current Liabilities of $3.0 million.
2. B)Current Assets of $6.5 million, and no Current Liabilities.
3. C)Current Assets of $3.9 million, and no Current Liabilities.
4. D)Current Assets of $0.9 million, and no Current Liabilities.

2.) When preparing its December 31, 2015 balance sheet, Beertender would report the following with regards to this contract:

1. A)Current Assets of $7.9 million, and Current Liabilities of $7.5 million.
2. B)Current Assets of $0.6 million, and Current Liabilities of $0.2 million.
3. C)Current Assets of $7.3 million, and Current Liabilities of $7.5 million.
4. D)Current Assets of $0.4 million, and no Current Liabilities.