Hudson Manufacturing received a $$250,000$ as a prepayment from LiFa LLC for

the sale of new machines. Hudson will bill LiFa an additional $$115,000$ upon

delivery of the machines. Upon receipt of the $$250,000$ prepayment, how much

should Hudson recognize for a contract asset, a contract liability, and accounts

receivable?

Multiple Choice

Contract asset: $$0$; contract liability: $$250,000,$ accounts

receivable, $$115,000.$

Contract asset: $$250,000$; contract liability: $$0,$ accounts

receivable, $$115,000.$

Contract asset: $$250,000$; contract liability: $$0,$ accounts

receivable, $$0.$

Contract asset: $$0$; contract liability: $$250,000,$ accounts

receivable, $$0.$