Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,000,000. The project began in 2018 and was completed in 2019. Data relating to the contract are summarized below: 2018 2019 Costs Incurred during the year $ 300,000 $1,575,000 Estimated costs to complete as of 12/31 1,200,000 Billings during the year 380,000 1,620,000 Cash collections during the year 250,000 1,750.000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 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 2018 and 2019 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 2018 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 2018 assuming this project does not qualify for revenue recognition over time. Complete this question by entering your answers in the tabs below. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming Nortel recognizes revenue over time according to percentage of completion. (Use percentages as calculated and rounded in the table below to arrive at your final answer. Less amounts should be indicated with a minus sign.) http://ezto.mheducation.com/hm.tpx?todo-c15 SinglePrintView&singleQuestionNo-1.&postSubmissionView-13252707245434 435&wid-13252707389... 3/4 Required 1 Required 2 Required 3 Required 4 Percentages of completion Choose numerator Choose denominator = % complete to date Actual costs to date Estimated total costs 2018 300,000 1,500.000 20.00% 2019 1,875,000 1,875.000 100.00% 2018 To date Recognized In prior years Recognized In 2018 Construction revenue $ 400,000 $ 400,000 Construction expense 300.000) 300,000) Gross profit (1068) 100,000 100,000 2019 To date Recognized In prior years Recognized In 2015 Construction revenue 2,000.000 $ 400,000 5 1,600.000 Construction expense (1,875,000) $ (300.000). 5 [1,575,000) Gross profit (1089) 125,000 3 100,000 25.000 Explanation: 1. 2018 2019 Contract price $2 000,000 $2.000,000 Actual costs to date 300,000 1,875.000 Estimated costs to complete 200.000 -0