Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,050,000. 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 $ 304,000 1,216,000 388,000 256,000 2022 $1,593,000 0 1,662,000 1,794,000 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. 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 reven according to percentage of completion. (Loss amounts should be indicated with a minus sign. Use percentages as calculated a table below to arrive at your final answer.) Percentages of completion Choose denominator Choose numerator - % complete to date Actual costs to date Estimated total costs 2021 $ $ 20.00% 304,000 1,897,000 1,520,000 1,897,000 = 2022 $ . $ 100.00% 2021 To date Recognized in prior years Recognized in 2021 0 Construction revenue $ 0 $ Construction expense $ 0 Gross profit (loss) 2022 To date Recognized in prior years Recognized in 2022 0 $ Construction revenue $ 0 Construction expense Gross profit (loss) $ 0 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 does not qualify for revenue recognition over time. (Loss amounts should be indicated with a minus sign.) Revenue Gross Profit (Loss) 2021 2022 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. re: eve 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 2021 assuming this project does not qualify for revenue recognition over time. Balance Sheet (Partial) At December 31, 2021 Current assets: Current liabilities: