Exercise 6-19 (Algo) Long-term contract; revenue recognition over time and at a point in time [LO6-9] Assume Avaya contracted to provide a customer with Internet infrastructure for $2,910,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below Costs incurred during the year Estimated costs to complete as of 12/31 sillings during the year Cash collections during the year Required: 2024 2025 $ 376,000 $2,265,000 1,504,000 535,000 1,810,000 500,000 1,845,000 1. 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 2. 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. 3. 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. 4. 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. Required 1 Required 2 Required 3 Required 4 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. Percentages of completion 2024 376,000 4 $ 2025 S 2.641.000 + $ 1,800,000 2.641,000 20.00% 100.00% 2024 Show less A 1. 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 2. 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 3. 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. 4. 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. Required 11 Required 21 Required 31 Required 4 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. 2024 2025 To date Construction revenue Construction expense Gross profit (loss) Construction revenue. Construction expense Gross profit (loss) Percentages of completion 376,000+ 2.641,000+ S $ 1,850,000- 2.641,000 20.00% 100.00% 2024 Recognized in prior years Recognized in 2024 $ $ 5 To date 2025 Recognized in prior years Recognized in 2025 S 0 O $ 0 Required 2 > Show less A assuming this project does not qualify for revenue recognition over time. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 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. Note: Loss amounts should be indicated with a minus sign. Leave no cells blank, Revenue 2024 2025 Gross Profit (Loss) Book 1. Compute the amount of revenue and gross profit or loss to be recognized revenue over time according to percentage of completion. 2. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming this project do 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 2 assuming Avaya 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 2 assuming this project does not qualify for revenue recognition over time. Complete this question by entering your answers in the tabs below. Hint Required 1 Required 2 Required 3 Required 4 ferences Prepare a partial balance sheet to show how the information related to this contract would be presented at the end 2024, assuming Avaya recognizes revenue over time according to percentage of completion. Balance Sheet (Partial) At December 31, 2024 Current assets Current liabilities < Required 2 Required 4 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Req d 4 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. Balance Sheet (Partial) At December 31, 2024 Current assets Current liabilities