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Under U.S. GAAP, how much revenue would Mary recognize in year 1 of the license? A) $0 B) $1,500 ) $3,000 D) $15,000

Under U.S. GAAP, how much revenue would Mary recognize in year 1 of the license? A) $0 B) $1,500 ) $3,000 D) $15,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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96) The Fremont (Ireland) Flyers were a semi-professional carriage racing team that competed up until the early 1930's. Mary Smith owns the Fremont Fliers' trademark, and recently licensed it to the Fremont (California) Flyers roller derby team. The license allows the roller derby team to use the trademark for five years for a total of $15,000. Under U.S. GAAP, how much revenue would Mary recognize in year 1 of the license? A) $0 B) $1.500 C) $3,000 D) $15,000
Transcribed Image Text:96) The Fremont (Ireland) Flyers were a semi-professional carriage racing team that competed up until the early 1930's. Mary Smith owns the Fremont Fliers' trademark, and recently licensed it to the Fremont (California) Flyers roller derby team. The license allows the roller derby team to use the trademark for five years for a total of $15,000. Under U.S. GAAP, how much revenue would Mary recognize in year 1 of the license? A) $0 B) $1.500 C) $3,000 D) $15,000
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