Exercise 5-17 Long-term contract; revenue recognition over time and at a point in time [L05-91 Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,100,000. The project began in 2018 and was completed in 2019. 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 308,000 $1,615,000 1,232,000 390,000 1,640,000 254,000 1,760,000 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 Complete this question by entering your answers in the tabs below