Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,000,000. The project began in 2021 and was completed in 2022. Data relating to the contract are summarized below: Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2021 2022 $300,000 $1,575,000 1,200,000 380,000 1,620,000 250,000 1,750,000. 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. Choose numerator + Choose denominator Actual costs to date Estimated total costs 2021 $ 2022 $ 300,000 + $ 1,600,000+ $ 1,500,000 2,000,000 = = Construction revenue Construction expense Gross profit (loss) Construction revenue. Construction expense Gross profit (loss) To date 2021 Recognized in prior years 2022 % complete to date 20.00% 80.00% Recognized in 2021 $ 0 $ 0 $ 0 To date Recognized in prior years Recognized in 2022 $ 0 $ 0 $ 0 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 this project qualify for revenue recognition over time. (Loss amounts should be indicated with a minus sign.) Revenue 2021 2022 Gross Profit (Loss) 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. Balance Sheet (Partial) At December 31, 2021 Current assets: Current liabilities Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of assuming this project does not qualify for revenue recognition over time. Balance Sheet (Partial) At December 31, 2021 Current assets: Current liabilities