Pares Bramble is an accrual-based calendar year corporation that manufacturers, sells, and installs sprinkler systems in commercialbuildings. The price of the system includes two free service calls. The cost of each service call is $48. At the end of 2023, Brambleaccrued a $25,900 expense and a $25,900 liability for future service calls for systems sold in 2023. By September 15, 2024, Bramblehad made 250 service calls for 2023 systems; from September 16 through December 31, 2024, Bramble made 110 additional servicecalls for 2023 systems.If Bramble has not adopted the recurring item exception as its method of accounting for service calls, how much of the $25,900accrued expense can it deduct in 2023 and 2024? (If answer is zero, please enter O, do not leave any fields blank.)Year20232024$$Deduction259000X If Bramble has adopted the recurring item exception as its method of accounting for service calls, how much of the $25,900accrued expense can it deduct in 2023 and 2024? (If answer is zero, please enter O, do not leave any fields blank.)Year20232024$$Deduction379005280IX

It is an expense that can be subtracted from a person's or a business's total income to calculate…

Bramble is an accrual-based calendar year corporation that manufacturers, sells, and installs sprinkler systems in commercial buildings. The price of the system includes two free service calls. The cost of each service call is $48. At the end of 2023, Bramble accrued a $25,900 expense and a $25,900 liability for future service calls for systems sold in 2023. By September 15, 2024, Bramble had made 250 service calls for 2023 systems; from September 16 through December 31, 2024, Bramble made 110 additional service calls for 2023 systems.

Bramble is an accrual-based calendar year corporation that manufacturers, sells, and installs sprinkler systems in commercial buildings. The price of the system includes two free service calls. The cost of each service call is $48. At the end of 2023, Bramble accrued a $25,900 expense and a $25,900 liability for future service calls for systems sold in 2023. By September 15, 2024, Bramble had made 250 service calls for 2023 systems; from September 16 through December 31, 2024, Bramble made 110 additional service calls for 2023 systems.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6P

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