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(TCO A) Tim Construction Co. began operations in 2014. Construction activity for 2014 is shown below. Tim uses the percentage of completion method.

Contract	Contract Price	Billings Through 12/31/14	Collections Through 12/31/14	Costs to 12/31/14	Estimated Costs to Complete
1	$5,200,000	$3,500,000	$2,600,000	3,000,000	1,000,000
2	3.600,000	1,500,000	1,000,000	820,000	1,880,000
3	3,300,000	1,900,000	1,800,000	2,250,000	1,200,000

Which of the following should be shown on the Balance Sheet on Dec 31, 2014 related to Contract 1?

(Points : 5) $1,200,000 Inventory $3,500,000 Current liability $1,400,000 Inventory $4,900,000 Current liability