Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevant data are summarized below:Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevant data are summarized below:Contract amount $2,775,000Cost: 2017 1,150,000 2018 550,000Gross profit: 2017 725,000 2018 350,000Contract billings: 2017 1,387,500 2018 1,387,500ADH recognizes revenue upon completion of the contract. In its December 31, 2017, balance sheet, ADH would report:.A. The contract liability, billings in excess of cost, of $237,500.B. The contract asset, cost and profits in excess of billings, of $487,500.C. The contract asset, deferred profit, of $350,000.D. The contract asset, contract amount in excess of billings, of $1,387,500.