Assume Avaya contracted to provide a customer with Internet infrastructure for $2,300,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below:

	2024	2025
Costs incurred during the year	$ 324,000	$ 1,800,000
Estimated costs to complete as of 12/31	1,296,000	0
Billings during the year	410,000	1,680,000
Cash collections during the year	310,000	1,780,000

Required:

Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming Avaya recognizes revenue over time according to percentage of completion.

Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming this project does not qualify for revenue recognition over time.

Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming Avaya recognizes revenue over time according to percentage of completion.

Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming this project does not qualify for revenue recognition over time

Balance Sheet (Partial) At December 31, 2024 Current assets: Current liabilities: \begin{tabular}{|ll} \hline & Balance Sheet (Partial) \\ \hline & At December 31, 2024 \\ \hline Current assets: & \\ \hline & \\ \hline \end{tabular} Current liabilities: \begin{tabular}{|l|l|l} & Revenue & Gross Profit (Loss) \\ \hline 2024 & & \\ \hline 2025 & & \\ \hline \end{tabular}