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Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,810,000. The project began in 2021 and was completed in 2022. Data relating

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Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,810,000. The project began in 2021 and was completed in 2022. Data relating to the contract are summarized below: $2,205,000 Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2021 $ 368,000 1.472.000 525,000 480,000 1,790,000 1,835,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 assuming Nortel recognizes revenue over time according to percentage of completion 2. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 assuming this project does not qualify for revenue recognition over time. 3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2021 assuming Nortel recognizes revenue over time according to percentage of completion 4. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2021 assuming this project does not qualify for revenue recognition over time. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 assuming Nortel recognizes revenue ove according to percentage of completion. (Loss amounts should be indicated with a minus sign. Use percentages as calculated and rou table below to arrive at your final answer.) Percentages of completion Choose denominator Choose numerator % complete to date 368 000 21.13% 2021 Recognized in prior years To date Recognized in 2021 Construction revenue Construction expense Gross profil loss) 2022 Recognized in prior years To date Recognized in 2022 Construction revenue Construction expense Gross profit (loss) Required 2 >

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