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 $2,450,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below: 2024 2025 Costs incurred during the year $ 336,000 $ 1,870,000 Estimated costs to complete as of 12/31 Billings during the year 1,344,000 0 Cash collections during the year 446,000 361,000 1,710,000 1,795,000 Required: 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 Required Required Required 1 2 3 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. Show less Percentages of completion 2024 2025 0 + 0 To date 2024 Recognized in prior years Recognized in 2024 Construction revenue Construction expense Gross profit (loss) $ 0 $ 0 $ 0 2025 To date Recognized in prior years Recognized in 2025 Construction revenue Construction expense $ 0 $ 0 Gross profit (loss) $ 0 < Required 1 Required 2 >