Revenue recognition: GAAP (Generally accepted accounting principle) states that under specific conditions only the revenue is recognized and accounted for. Performance obligation: A promise to transfer goods or services is said to be the performance obligation. It exists if a customer gets benefits from goods or services with the available resources and is determined by the company. (a) To describe: To describe the revenue recognition principle.

Question

Joe transferred land worth $200,000, with a tax basis of $40,000, to JH Corporation, an existing entity, for 100 shares of its stock. JH Corporation has two other shareholders, Ethan and Young, each of whom holds 100 shares. With respect to the transfer:a. Joe has no recognized gain. b. JH Corporation has a basis of $160,000 in the land.c. Joe has a basis of $200,000 in his 100 shares in JH Corporation. d. Joe has a basis of $40,000 in his 100 shares in JH Corporation. e. None of the above.

Answer 1

Question

Chapter 18, Problem 2CA

To determine

Revenue recognition: GAAP (Generally accepted accounting principle) states that under specific conditions only the revenue is recognized and accounted for.

Performance obligation: A promise to transfer goods or services is said to be the performance obligation. It exists if a customer gets benefits from goods or services with the available resources and is determined by the company.

(a)

To describe: To describe the revenue recognition principle.

To determine

(b)

To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.

To determine

(c) To explain: To explain whether collectibility a consideration in the recognition of revenue.

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Joe transferred land worth $200,000, with a tax basis of $40,000, to JH Corporation, an existing entity, for 100 shares of its stock. JH Corporation has two other shareholders, Ethan and Young, each of whom holds 100 shares. With respect to the transfer:a. Joe has no recognized gain. b. JH Corporation has a basis of $160,000 in the land.c. Joe has a basis of $200,000 in his 100 shares in JH Corporation. d. Joe has a basis of $40,000 in his 100 shares in JH Corporation. e. None of the above.

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Answer 2

Question

Chapter 18, Problem 2CA

To determine

Revenue recognition: GAAP (Generally accepted accounting principle) states that under specific conditions only the revenue is recognized and accounted for.

Performance obligation: A promise to transfer goods or services is said to be the performance obligation. It exists if a customer gets benefits from goods or services with the available resources and is determined by the company.

(a)

To describe: To describe the revenue recognition principle.

To determine

(b)

To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.

To determine

(c) To explain: To explain whether collectibility a consideration in the recognition of revenue.

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Answer 3

Question

Chapter 18, Problem 2CA

To determine

Revenue recognition: GAAP (Generally accepted accounting principle) states that under specific conditions only the revenue is recognized and accounted for.

Performance obligation: A promise to transfer goods or services is said to be the performance obligation. It exists if a customer gets benefits from goods or services with the available resources and is determined by the company.

(a)

To describe: To describe the revenue recognition principle.

To determine

(b)

To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.

To determine

(c) To explain: To explain whether collectibility a consideration in the recognition of revenue.

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Answer 4

Question

Chapter 18, Problem 2CA

To determine

Revenue recognition: GAAP (Generally accepted accounting principle) states that under specific conditions only the revenue is recognized and accounted for.

Performance obligation: A promise to transfer goods or services is said to be the performance obligation. It exists if a customer gets benefits from goods or services with the available resources and is determined by the company.

(a)

To describe: To describe the revenue recognition principle.

To determine

(b)

To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.

To determine

(c) To explain: To explain whether collectibility a consideration in the recognition of revenue.

Expert Solution & Answer

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Answer 5

Chapter 18, Problem 2CA

To determine

Revenue recognition: GAAP (Generally accepted accounting principle) states that under specific conditions only the revenue is recognized and accounted for.

Performance obligation: A promise to transfer goods or services is said to be the performance obligation. It exists if a customer gets benefits from goods or services with the available resources and is determined by the company.

(a)

To describe: To describe the revenue recognition principle.

To determine

(b)

To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.

To determine

(c) To explain: To explain whether collectibility a consideration in the recognition of revenue.

Answer 6

Chapter 18, Problem 2CA

To determine

Revenue recognition: GAAP (Generally accepted accounting principle) states that under specific conditions only the revenue is recognized and accounted for.

Performance obligation: A promise to transfer goods or services is said to be the performance obligation. It exists if a customer gets benefits from goods or services with the available resources and is determined by the company.

(a)

To describe: To describe the revenue recognition principle.

Answer 7

Chapter 18, Problem 2CA

To determine

Revenue recognition: GAAP (Generally accepted accounting principle) states that under specific conditions only the revenue is recognized and accounted for.

Performance obligation: A promise to transfer goods or services is said to be the performance obligation. It exists if a customer gets benefits from goods or services with the available resources and is determined by the company.

(a)

To describe: To describe the revenue recognition principle.

Answer 8

To determine

(b)

To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.

Answer 9

To determine

(b)

To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.

Answer 10

To determine

(c) To explain: To explain whether collectibility a consideration in the recognition of revenue.

Answer 11

To determine

(c) To explain: To explain whether collectibility a consideration in the recognition of revenue.

Answer 12

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Ch. 18 - Prob. 1Q Ch. 18 - Prob. 2Q Ch. 18 - Prob. 3Q Ch. 18 - Prob. 4Q Ch. 18 - Prob. 5Q Ch. 18 - Prob. 6Q Ch. 18 - Prob. 7Q Ch. 18 - Prob. 9Q Ch. 18 - Prob. 10Q Ch. 18 - Prob. 11Q

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(b)

To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.

(c) To explain: To explain whether collectibility a consideration in the recognition of revenue.

Chapter 18 Solutions

Videos

(b) To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.

(c) To explain: To explain whether collectibility a consideration in the recognition of revenue.

Chapter 18 Solutions

(b)

To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.