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			2017
Costs incurred during the year	$	332,000		$	1,850,000
Estimated costs to complete as of 12/31		1,328,000			0
Billings during the year		441,000			1,700,000
Cash collections during the year		266,000			1,790,000

Required:

1. 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 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 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 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

2016 2017 Estimated total gross profit (loss) Percentages of completion Choose numerator Choose denominator | = | % complete to date 2016 2017