Exercise $6-19($Algo$)$ Long$-$term contract; revenue recognition over time and at a point in time $[$LO$6-9]$

Assume Avaya contracted to provide a customer with Internet infrastructure for $$2,650,000.$ The project began in $2024$ and was

completed in $2025.$ Data relating to the contract are summarized below:

Required:

Compute the amount of revenue and gross profit or loss to be recognized in $2024$ and $2025,$ assuming Avaya recognizes

revenue over time according to percentage of completion.

Compute the amount of revenue and gross profit or loss to be recognized in $2024$ and $2025,$ assuming this project does not

qualify for revenue recognition over time.

Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of $2024,$

assuming Avaya recognizes revenue over time according to percentage of completion.

Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of $2024,$

assuming this project does not qualify for revenue recognition over time.