Preparing Financial Statement Presentation for Long-Term Contracts Watson Construction Company contracted to build a plant for $350,000. Construction started in January 2020 and was completed in November 2021. Watson uses the cost-to-cost method to measure the completion of its performance obligations. Data relating to the contract follow. As of December 31 Costs incurred Estimated costs to complete Billings Cash collections 2020 2021 $203.000 $84.000 87.500 199,000 161,000 175,000 175,000 Required a. What is the income statement impact of the contract assuming (1) revenue is recognized at a point in time, and (2) that revenue is recognized over time for 2020 and 2021? Note: Do not round until your final answers; round your final answers to the nearest whole dollar. Revenue at Revenue a point in time over time Income statement (1) (2) Income reported: 2020 S Income reported: 2021 $ 05 05 0 b. What is the balance sheet impact of the contract assuming (1) revenue is recognized at a point in time, and (2) that revenue is recognized over time for 2020 and 2021? Note: Do not round until your final answers; round your final answers to the nearest whole dollar. Revenue at Revenue a point in time over time Balance sheet (1) (2) Receivables: 2020 Receivables: 2021 $ 0 $ $ Inventory-Construction in process, net of billings: 2020 $ Inventory-Construction in process, net of billings: 2021 S 05 0 S