QUESTION 3 2020 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 $ 3,090,000 Cost: 2020 1,220,000 2021 Gross profit 620,000 830.000 2021 420.000 Contract billings: 2020 1,545,000 2021 1,545.000 ADH recognizes revenue upon completion of the contract. In its December 31, 2020, balance sheet, ADH would report The contract asset, contract amount in excess of billings of $1,545.000 The contract liability billings in excess of cost of $325.000. The contract asset cost and profits in excess of billings of $505.000 The contract asset, deferred profit of $420,000