Contract Asset

Hi

There seems to be two ways to recognise a contract asset, both producing different answers.

1) Revenue recognise based on % completion x
Amounts invoiced/received (x)
Contract Asset x

2) Costs incurred to date x
Profit based on % completion x
Less amts invoiced/received (x)
Contract Asset x

Which one is best to use in a question when info for both is available?

BPP practice kit Haverford Co p,137.

I calculated contract asset as: 5,600,000-1,400,000 = 4,200,000

Solution: 1,900,000 + 2,000,000 – 1,400,000 = 2,500,000