Arizona Desert Homes (ADH) constructed a new subdivision during 2020 and 2021 under contract with Cactus Development Co. Relevant data are summarized below: Contract amount Cost: Gross profit: 2020 2021 2020 2021 2020 2021 $3,180,000 1,240,000 640,000 860,000 440,000 1,590,000 1,590,000 Contract billings: ADH recognizes revenue upon completion of the contract. In its December 31, 2020, balance sheet, ADH would report: Multiple Choice C ) The contract asset, contract amount in excess of billings, of $1,590,000. The contract asset, deferred profit, of $440,000. o o The contract asset, cost and profits in excess of billings, of $510,000. The contract liability, billings in excess of cost, of $350,000