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Crane Industries manufactures sump-pumps. Its most popular product is called the Super Soaker, which has a retail price of $1,230 and costs $570 to manufacture. It sells the Super Soaker on a standalone basis directly to businesses. Crane also provides installation services for these commercial customers, who want an emergency pumping capability (with regular and back-up generator power) at their businesses. Crane also distributes the Super Soaker through a consignment agreement with Menards. Income data for the first quarter of 2025 from operations other than the Super Soaker are as follows. Revenues Expenses $9.571,000 7,122,000 Crane has the following information related to two Super Soaker revenue arrangements during the first quarter of 2025. 1. Crane sells 30 Super Soakers to businesses in flood-prone areas for a total contract price of $59,100. In addition to the pumps, Crane also provides installation (at a cost of $160 per pump). On a standalone basis, the fair value of this service is $180 per unit installed. The contract payment also includes a $11 per month service plan for the pumps for 3 years after installation (Crane's cost to provide this service is $6 per month). The Super Soakers are delivered and installed on March 1, 2025, and full payment is made to Crane. Any discount is applied to the pump/installation bundle. Crane ships 270 Super Soakers to Menards on consignment. By March 31, 2025, Menards has sold two-thirds of the consigned merchandise at the listed price of $1,230 per unit. Menards notifies Crane of the sales, retains a 5% commission, and remits the cash due Crane. (a) * Your answer is incorrect. Determine Crane Industries' 2025 first-quarter net income. (Ignore taxes.) Net income $ 93810

Crane Industries manufactures sump-pumps. Its most popular product is called the Super Soaker, which has a retail price of $1,230 and costs $570 to manufacture. It sells the Super Soaker on a standalone basis directly to businesses. Crane also provides installation services for these commercial customers, who want an emergency pumping capability (with regular and back-up generator power) at their businesses. Crane also distributes the Super Soaker through a consignment agreement with Menards. Income data for the first quarter of 2025 from operations other than the Super Soaker are as follows. Revenues Expenses $9.571,000 7,122,000 Crane has the following information related to two Super Soaker revenue arrangements during the first quarter of 2025. 1. Crane sells 30 Super Soakers to businesses in flood-prone areas for a total contract price of $59,100. In addition to the pumps, Crane also provides installation (at a cost of $160 per pump). On a standalone basis, the fair value of this service is $180 per unit installed. The contract payment also includes a $11 per month service plan for the pumps for 3 years after installation (Crane's cost to provide this service is $6 per month). The Super Soakers are delivered and installed on March 1, 2025, and full payment is made to Crane. Any discount is applied to the pump/installation bundle. Crane ships 270 Super Soakers to Menards on consignment. By March 31, 2025, Menards has sold two-thirds of the consigned merchandise at the listed price of $1,230 per unit. Menards notifies Crane of the sales, retains a 5% commission, and remits the cash due Crane. (a) * Your answer is incorrect. Determine Crane Industries' 2025 first-quarter net income. (Ignore taxes.) Net income $ 93810

Intermediate Accounting: Reporting And Analysis
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 9E: GrillMaster Inc. sells an industry-leading line of outdoor charcoal and gas grills to customers...
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Crane Industries manufactures sump-pumps. Its most popular product is called the Super Soaker, which has a retail price of $1,230 and costs $570 to manufacture. It sells the Super Soaker on a standalone basis directly to businesses. Crane also provides installation services for these commercial customers, who want an emergency pumping capability (with regular and back-up generator power) at their businesses. Crane also distributes the Super Soaker through a consignment agreement with Menards. Income data for the first quarter of 2025 from operations other than the Super Soaker are as follows. Revenues Expenses $9.571,000 7,122,000 Crane has the following information related to two Super Soaker revenue arrangements during the first quarter of 2025. 1. Crane sells 30 Super Soakers to businesses in flood-prone areas for a total contract price of $59,100. In addition to the pumps, Crane also provides installation (at a cost of $160 per pump). On a standalone basis, the fair value of this service is $180 per unit installed. The contract payment also includes a $11 per month service plan for the pumps for 3 years after installation (Crane's cost to provide this service is $6 per month). The Super Soakers are delivered and installed on March 1, 2025, and full payment is made to Crane. Any discount is applied to the pump/installation bundle. Crane ships 270 Super Soakers to Menards on consignment. By March 31, 2025, Menards has sold two-thirds of the consigned merchandise at the listed price of $1,230 per unit. Menards notifies Crane of the sales, retains a 5% commission, and remits the cash due Crane. (a) * Your answer is incorrect. Determine Crane Industries' 2025 first-quarter net income. (Ignore taxes.) Net income $ 93810
Transcribed Image Text:Crane Industries manufactures sump-pumps. Its most popular product is called the Super Soaker, which has a retail price of $1,230 and costs $570 to manufacture. It sells the Super Soaker on a standalone basis directly to businesses. Crane also provides installation services for these commercial customers, who want an emergency pumping capability (with regular and back-up generator power) at their businesses. Crane also distributes the Super Soaker through a consignment agreement with Menards. Income data for the first quarter of 2025 from operations other than the Super Soaker are as follows. Revenues Expenses $9.571,000 7,122,000 Crane has the following information related to two Super Soaker revenue arrangements during the first quarter of 2025. 1. Crane sells 30 Super Soakers to businesses in flood-prone areas for a total contract price of $59,100. In addition to the pumps, Crane also provides installation (at a cost of $160 per pump). On a standalone basis, the fair value of this service is $180 per unit installed. The contract payment also includes a $11 per month service plan for the pumps for 3 years after installation (Crane's cost to provide this service is $6 per month). The Super Soakers are delivered and installed on March 1, 2025, and full payment is made to Crane. Any discount is applied to the pump/installation bundle. Crane ships 270 Super Soakers to Menards on consignment. By March 31, 2025, Menards has sold two-thirds of the consigned merchandise at the listed price of $1,230 per unit. Menards notifies Crane of the sales, retains a 5% commission, and remits the cash due Crane. (a) * Your answer is incorrect. Determine Crane Industries' 2025 first-quarter net income. (Ignore taxes.) Net income $ 93810
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