Assume Miami FiberOptics contracted to provide a customer with Internet infrastructure for $$4,000,000.$ The project

began in Year $1$ and was completed in Year $2.$ Data relating to the contract are summarized below:

Compute the amount of revenue and gross profit or loss to be recognized in Year $1$ and Year $2,$ assuming Miami FiberOptics

recognizes revenue over time according to percentage of completion.

Compute the amount of revenue and gross profit or loss to be recognized in Year $1$ and Year $2,$ assuming this project does not

qualify for revenue recognition over time.