E 5-17 Long-term contract; revenue recognition over time and at a point in time 05-9 Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,000,000. The project began in 2018 and was completed in 2019. Data relating to the contract are summarized below: 2019 2018 $300,000 1,200,000 380,000 250,000 $1,575,000 Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 1,620,000 1,750,000 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