Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,200,000. 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	$	316,000		$	1,700,000
Estimated costs to complete as of 12/31		1,264,000			0
Billings during the year		400,000			1,660,000
Cash collections during the year		258,000			1,770,000

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.

Required 1 Required 2 Required 3Required 4 Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assum revenue over time according to percentage of completion. (Loss amounts should be indicated with percentages as calculated and rounded in the table below to arrive at your final answer.) Percentages of completion Choose denominator Estimated total costs | % complete to date Choose numerator Actual costs to date 2018 20.00% $ | |$ 316.000 1,580,000 2019 2,016,000 2,016,000= 100.00% 2018 Recognized in prior years Recognized in 2018 To date Construction revenue Construction expense 440,000 316,000 124,000 440,000 316,000 124,000 Gross profit (loss)S 2019 Recognized in prior Recognized in 2019 To date years Construction revenue Construction expense Gross profit (oss) 2,200,000s 2,200,000s 440,000S 1,700,000 1,760,000 500,000