Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,760,000. The project began in 2016 and was completed in 2017. Data relating to the contract are summarized below:

2016

2017

Costs incurred during the year

$

364,000

$

2,175,000

Estimated costs to complete as of 12/31

1,456,000

0

Billings during the year

520,000

1,780,000

Cash collections during the year

282,000

1,830,000

Required:

1. Compute the amount of revenue and gross profit or loss to be recognized in 2016 and 2017 assuming Nortel recognizes revenue over time according to percentage of completion. (Enter your answers in million. Use percentages as calculated and rounded in the table below to arrive at your final answer. Losses and expenses should be indicated with a minus sign.)

	2016	2017
Estimated total gross profit (loss)

Percentages of completion
	Choose numerator