Revenue from contract – expected loss

Dear Sir,
Below is the question:

Springthorpe entered into a three-year contract on 1 January 20X2 to build a factory. This is a contract where performance obligations are satisfied over time. The percentage of performance obligations satisfied is measured according to certificates issued by a surveyor. The contract price was $12 million. At 31 December 20X2 details of the contract were as follows.

$m
Costs to date 6
Estimated costs to complete 9
Amounts invoiced 4
Certified complete 40%

What amount should appear in the statement of financial position of Springthorpe as at 31 December 20X2 as contract assets/liabilities in respect of this contract?

A $1 million contract liability
B $2 million contract liability
C $1 million contract asset
D $2 million contract asset

Here is the solution I suggested:

Solution (1): Solution (2):
W1: W1:
$m $m
Sales (1.2m x 40%) 4.8 Sales 6.0
Cost (Balancing figure) (7.8) Cost (Balancing figure) (9.0)
Loss (3.0) Loss (3.0)

W2 : (Same for both solutions):
$m
Cost to date 6.0
P/(L) (3.0)
3.0
Amount invoiced (4.0)
Contract liability (1.0)

Although the answer is the same for both solutions, may i know which W1 should I adopt if expected loss is arisen for the period.

Thank you.
Laurence Hew