Entity A is a local contractor listed in Hong Kong for many years. It entered into a contract with the government on 1 January 2021 to build a cross-harbour tunnel.

The total contract revenue was $5,600,000. On 31 December 2021, the contract was certified as 35% complete. Costs incurred during the year were $1,480,000 and costs to complete are estimated at $2,800,000. The amount of $1,400,000 has been billed to the government but not yet paid.

REQUIRED:

Evaluate the amount of Contract Asset or Contract Liability that will be recognised in the Statement of Financial Position on 31 December 2021.