nces 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 $2,150,000. 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 Billings during the year Cash collections during the year Required: 2024 2025 $ 312,000 $1,635,000 1,248,000 e 395,000 1,650,000 280,000 1,765,000 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. 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. 2024 2025 Construction revenue Construction expense $ Gross profit (loss) Construction revenue Construction expense Gross profit (loss) To date To date Percentages of completion 312,000 + + 312,000 0 2024 Recognized in prior years Recognized in 2024 $ 0 $ 312,000 $ 2025 Recognized in prior years Recognized in 2025 $ 0 $ 0 $ Required 2> Show less A Required 1 Required 2 Required 3 Required 4 tabs below. Compute the amount of revenue and gross profit or less 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) Required 1 Required 2 Required 3 Required 4 Prepare a partial balance sheet to show how the information related to this contract would assuming Avaya recognizes revenue over time according to percentage of completion. Balance Sheet (Partial) At December 31, 2024 Current assets Current liabilities: Prepare a partial balance sheet to show how the information related to this contract would be pre assuming this project does not qualify for revenue recognition over time. Balance Sheet (Partial) At December 31, 2024 Current assets Current liabilities