The Naples Company uses the percentage-of-completion method and the cost-to-cost method for its long-term construction contracts. On one such contract, Naples expects total revenues of $260,000 and total costs of $200,000. During the first year, Naples incurred costs of $50,000 and billed the customer $30,000 under the contract. At what net amount should Naples' Construction in Progress for this contract be reported at the end of the first year?
a) $30,000
b) $35,000
c) $50,000
d) $65,000