QUESTION 3 Arizona Desert Homes (ADH) constructed a new subdivision during 2020 and 2021 under contract with Cactus Development Co, Relevant data are summarized below: Cost: 3,090,000 1,220,000 620,000 830,000 420,000 1,545,000 1.545,000 Contract amount 2020 2021 Gross profit 2020 2021 Contract billings: 2020 2021 ADH recognizes revenue upon completion of the contract In its December 31, 2020, balance sheet, ADH would report: The contract asset, deferred profit, of $420,000 The contract liability, bilings in excess of cost of $325,000 The contract asset contract amount in excess of billings of 51,545,000. The contract asuit, cost and profits in excess of billings, of 5505.000