Saar Associates sells two licenses to Kim & Company on September 1, 2024. First, in exchange for $76,000, Saar provides Kim with a copy of its proprietary investment management software, which Saar does not anticipate updating and which Kim can use permanently. Second, in exchange for $63,000, Saar provides Kim with a three-year right to market Kim's financial advisory services under the name of Saar Associates, which Saar advertises on an ongoing basis. How much revenue will Saar recognize in 2024 under this arrangement? Note: Do not round intermediate calculation. Revenue

Saar Associates sells two licenses to Kim & Company on September 1, 2024. First, in exchange for $76,000, Saar provides Kim with a copy of its proprietary investment management software, which Saar does not anticipate updating and which Kim can use permanently. Second, in exchange for $63,000, Saar provides Kim with a three-year right to market Kim's financial advisory services under the name of Saar Associates, which Saar advertises on an ongoing basis. How much revenue will Saar recognize in 2024 under this arrangement? Note: Do not round intermediate calculation. Revenue

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Saar Associates sells two licenses to Kim & Company on September 1, 2024. First, in exchange for $76,000, Saar provides Kim with a
copy of its proprietary investment management software, which Saar does not anticipate updating and which Kim can use
permanently. Second, in exchange for $63,000, Saar provides Kim with a three-year right to market Kim's financial advisory services
under the name of Saar Associates, which Saar advertises on an ongoing basis.
How much revenue will Saar recognize in 2024 under this arrangement?
Note: Do not round intermediate calculation.
Revenue

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