Saar Associates sells two licenses to Kim & Company on September 1, 2024. First, in exchange for $103,000, 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 $92,700, Saar provides Kim with a four-year right to market Kim's financial advisory services under the name of Saar Associates, which Saar advertises on an ongoing basis. The trade name "Saar Associates" is not well known in the marketplace, and the owner provides no advertising or other benefits to a licensee of the Saar Associates trade name during the license period. How much revenue will Saar recognize in 2024 under this arrangement if Saar reports under U.S. GAAP? Note: Do not round intermediate calculation. Revenue
Saar Associates sells two licenses to Kim & Company on September 1, 2024. First, in exchange for $103,000, 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 $92,700, Saar provides Kim with a four-year right to market Kim's financial advisory services under the name of Saar Associates, which Saar advertises on an ongoing basis. The trade name "Saar Associates" is not well known in the marketplace, and the owner provides no advertising or other benefits to a licensee of the Saar Associates trade name during the license period. How much revenue will Saar recognize in 2024 under this arrangement if Saar reports under U.S. GAAP? Note: Do not round intermediate calculation. Revenue
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Rahul
Transcribed Image Text:Saar Associates sells two licenses to Kim & Company on September 1, 2024. First, in exchange for $103,000, 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 $92,700, Saar provides Kim with a four-year right to market Kim's financial advisory services
under the name of Saar Associates, which Saar advertises on an ongoing basis.
The trade name "Saar Associates" is not well known in the marketplace, and the owner provides no advertising or other benefits to a
licensee of the Saar Associates trade name during the license period.
How much revenue will Saar recognize in 2024 under this arrangement if Saar reports under U.S. GAAP?
Note: Do not round intermediate calculation.
Revenue
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