1.Sparky Associates sells two licenses to Kim & Company on September 1, 2016. First, in exchange for $100,000, Sparky provides Kim with a copy of its proprietary investment management software, which Sparky does not anticipate updating and which Kim can use permanently. Second, in exchange for $90,000, Sparky provides Kim with a three-year right to market Kim’s financial advisory services under the name of Sparky Associates, which Sparky advertises on an ongoing basis. How much revenue will Sparky recognize in 2016 under this arrangement?
2.The following data relates to a construction job started by Sparky Company during 2016:
WRITE THIS ESSAY FOR ME
Tell us about your assignment and we will find the best writer for your paper.
Get Help Now!Total Contract Price
$100,000
Actual costs incurred during 2016
20,000
Estimated remaining costs
40,000
Billed to customer during 2016
30,000
Received from customer during 2016
10,000
Assuming that Sparky recognizes revenue over time according to percentage of completion, how much should Sparky recognize as gross profit for 2016?
$0
$13,333
$33,333
$26,667
3.Video Planet (VP) sells a big screen TV package consisting of a 60-inch HDTV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customer’s home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $1,700, sells the remote separately for $100, and offers the installation service separately for $200. The entire package sells for $1,900.
Determine how much revenue should be allocated to each of the following components:
TV $
Remote $
Installation Service $
Introducing our Online Essay Writing Services Agency, where you can confidently place orders for a wide range of academic assignments. Our reputable homework writing company specializes in crafting essays, term papers, research papers, capstone projects, movie reviews, presentations, annotated bibliographies, reaction papers, research proposals, discussions, and various other assignments. Rest assured, our content is guaranteed to be 100% original, as every piece is meticulously written from scratch. Say goodbye to concerns about plagiarism and trust us to deliver authentic and high-quality work.
WRITE MY ESSAY NOW
