Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,450,000. The project began in 2016 and was completed in 2017. Data relating to the contract are summarized below:

20162017Costs incurred during the year$336,000$1,870,000Estimated costs to complete as of 12/311,344,0000Billings during the year446,0001,710,000Cash collections during the year268,0001,795,000

Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,450,000. The project began in 2016 and was completed in 2017. Data relating to the contract are summarized below: 2016 2017 $ 336,000 $1,870,000 1,344,00 0 0 446,000 1,710,000 268,000 1,795,000 Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 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. (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) Choose numerator Actual costs to date Choose denominator = % complete to date Estimated total costs 2016 = % 2017 = % 2016 To date Recognized in prior years Recognized in 2016 Construction revenue Construction expense Gross profit (loss) 2017 To date Recognized in prior years Recognized in 2017 Construction revenue Construction expense Gross profit (loss) 2. Compute the amount of revenue and gross profit or loss to be recognized in 2016 and 2017 assuming this project does not qualify for revenue recognition over time. Revenue Gross Profit (Loss) 2016 2017 3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2016 assuming Nortel recognizes revenue over time according to percentage of completion. Balance Sheet (Partial) At December 31, 2016 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 2016 assuming this project does not qualify for revenue recognition over time. 4. Balance Sheet (Partial) At December 31, 2016 Current assets: Current liabilities