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A company entered into a contract on 1 January 20X5 to build a factory.The total contr

act revenue was $2.8 million.At 31 December 20X5 the contract was certified as 35% complete.Costs incurred during the year were $740,000 and costs to complete are estimated at $1.4 million.$700,000 has been billed to the customer but not yet paid.

What amount will be recognised as a contract asset or liability in respect of this contract in the statement of financial position as at 31 December 20X5().

A、$271,000 contract asset

B、$509,000 contract asset

C、$271,000 contract liability

D、$509,000 contract liability

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