Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,400,000. The project began in 2016 and was completed in 2017. Data relating to the contract are summarized below: 2016 $ 332,000 1,328,000 Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2017 $1,850,000 266,000 1,700,000 1.790,000 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 2016 . $ 480,000 2017 Gross Profit (Loss) $ 148,000 70,000 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: 4. 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. Balance Sheet (Partial) At December 31, 2016 Current assets: Current liabilities