Exercise $6-19($Static$)$ 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 $$2,000,000.$ The project began in $2024$

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

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.

Complete this question by entering your answers in the tabs below.

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.

Note: Use percentages as calculated and rounded in the table below to arrive at your final answer. Loss

amounts should be indicated with a minus sign.