Thompson Construction began a construction project in 2016. The contract price was $1,250,000, and the estimated costs were $1,000,000. Data for each year of the contract are as follows: 
Required:
Assuming Thompson satisfies its performance obligation over time, determine: 1) The balance of Construction in Progress at the end of 2016.
2) How the net amount for construction in progress inventory should be reported on the
2017 balance sheet.
3) The gross profit for 2018.
Definitions:
Conditioned Stimulus
The stimulus that produces the conditioned response after classical conditioning (e.g., a bell causing dogs to salivate).
Variable-Ratio Reinforcement
A schedule of reinforcement where a response is reinforced after an unpredictable number of responses, making it highly resistant to extinction.
Social Learning
A theory that posits people learn new behaviors and attitudes through observation and interaction with others.
Operant Conditioning
A learning process through which the strength of a behavior is modified by reinforcement or punishment.
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