Mega Inc. has been working on a long term construction project for a customer. In Year 3, the project manager realized that remaining revenue under the contract of $250,000 was less than the estimated cost to complete the contract. The estimated cost to complete is $300,000. To cancel the contract now would result in Mega Inc. paying a penalty of $400,000. The contract is scheduled to be completed in Year 4 (next year). What journal entry, if any, should Mega Inc. record in the Year 3 financial statements? a) Debit to "penalty expense" of $400,000, credit to "provision for penalty" for $400,000 b) Debit to "loss on contract" of $50,000, credit to a "provision for onerous contract" for $50,000. c) No journal entry is to be made until Year 4 (if contract is completed) or when Mega Inc. cancels the contract. d) Debit to "loss on contract" of $150,000, credit to a "provision for onerous contract" for $150,000