Connect Access Card For Intermediate Accounting
10th Edition
ISBN: 9781260481938
Author: David Spiceland, James Sepe, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 6.25BE
To determine
Revenue recognition from license
The licenses are providing the right to sell product and services. In this license, the seller should recognize the revenue at the time of transfers of such rights of use. When the seller satisfies the performance obligation, the customer receives the seller’s ongoing activities. Therefore, the revenue is recognized over the period of time to access property.
To determine: The amount of revenue will recognize by S Associate in the year 2018 if reports under U.S GAAP.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A company had an income of $60,000 using absorption
costing for a given period. Beginning and ending inventories
for that period were 13,000 units and 18,000 units,
respectively. Ignoring income taxes, if the fixed overhead
application rate was $3.00 per unit, what was the income
using variable costing?
A. $75,000.
B. $60,000.
C. $45,000.
D. Not sufficient information to determine.
Can you solve this general accounting problem with appropriate steps and explanations?
An asset has a book value of $22,500 on December 31, Year 4.
The asset has been depreciated at a straight-line rate of $5,000
per year. If the asset is sold on December 31, Year 4 for
$19,000, what should the company record?
•
a. A loss on sale of $3,500
•
b. A gain on sale of $3,500
.
c. Neither a gain nor a loss is recognized
.
•
d. A loss on sale of $1,000
e. A gain on sale of $1,000
Chapter 6 Solutions
Connect Access Card For Intermediate Accounting
Ch. 6 - What are the five key steps a company follows to...Ch. 6 - What indicators suggest that a performance...Ch. 6 - What criteria determine whether a company can...Ch. 6 - We recognize service revenue either at one point...Ch. 6 - What characteristics make a good or service a...Ch. 6 - Prob. 6.6QCh. 6 - What must a contract include for the contract to...Ch. 6 - How might the definition of probable affect...Ch. 6 - When a contract includes an option to buy...Ch. 6 - Prob. 6.10Q
Ch. 6 - Prob. 6.11QCh. 6 - Is a customers right to return merchandise a...Ch. 6 - Prob. 6.13QCh. 6 - Under what circumstances should sellers consider...Ch. 6 - When should a seller view a payment to its...Ch. 6 - What are three methods for estimating stand-alone...Ch. 6 - When is revenue recognized with respect to...Ch. 6 - In a franchise arrangement, what are a franchisors...Ch. 6 - When does a company typically recognize revenue...Ch. 6 - Prob. 6.20QCh. 6 - Prob. 6.21QCh. 6 - Prob. 6.22QCh. 6 - Must bad debt expense be reported on its own line...Ch. 6 - Explain the difference between contract assets,...Ch. 6 - Explain how to account for revenue on a long-term...Ch. 6 - Prob. 6.26QCh. 6 - Prob. 6.27QCh. 6 - Timing of revenue recognition LO53 Estate...Ch. 6 - Allocating the transaction price LO54 Sarjit...Ch. 6 - Existence of a contract LO5-5 Tulane Tires wrote...Ch. 6 - Prob. 6.6BECh. 6 - Prob. 6.7BECh. 6 - Performance obligations; warranties LO55 Vroom...Ch. 6 - Prob. 6.9BECh. 6 - Prob. 6.10BECh. 6 - Variable consideration LO56 Leo Consulting enters...Ch. 6 - Prob. 6.16BECh. 6 - Prob. 6.17BECh. 6 - Prob. 6.18BECh. 6 - Prob. 6.19BECh. 6 - Prob. 6.20BECh. 6 - Prob. 6.21BECh. 6 - Estimating stand-alone selling prices: expected...Ch. 6 - Estimating stand-alone selling prices; residual...Ch. 6 - Prob. 6.24BECh. 6 - Prob. 6.25BECh. 6 - Contract assets and contract liabilities LO58...Ch. 6 - Long-term contract; revenue recognition over time;...Ch. 6 - Prob. 6.34BECh. 6 - Long-term contract; revenue recognition upon...Ch. 6 - Long-term contract; revenue recognition; loss on...Ch. 6 - Prob. 6.1ECh. 6 - Allocating transaction price LO54 Video Planet...Ch. 6 - Prob. 6.4ECh. 6 - Prob. 6.6ECh. 6 - Prob. 6.7ECh. 6 - Prob. 6.9ECh. 6 - Variable considerationmost likely amount; change...Ch. 6 - Variable considerationexpected value; change in...Ch. 6 - Prob. 6.12ECh. 6 - Prob. 6.13ECh. 6 - Prob. 6.14ECh. 6 - Approaches for estimating stand-alone selling...Ch. 6 - FASB codification research LO56, LO57 Access the...Ch. 6 - FASB codification research LO58 Access the FASB...Ch. 6 - Long-term contract; revenue recognition over time;...Ch. 6 - Prob. 6.1PCh. 6 - Prob. 6.2PCh. 6 - Prob. 6.3PCh. 6 - Prob. 6.5PCh. 6 - Variable consideration; change of estimate LO53,...Ch. 6 - Prob. 6.7PCh. 6 - Prob. 6.8PCh. 6 - Prob. 6.10PCh. 6 - Long-term contract; revenue recognition over time...Ch. 6 - Prob. 6.1DMPCh. 6 - Judgment Case 52 Satisfaction of performance...Ch. 6 - Judgment Case 53 Satisfaction of performance...Ch. 6 - Prob. 6.5DMPCh. 6 - Prob. 6.7DMPCh. 6 - Prob. 6.9DMPCh. 6 - Prob. 6.10DMPCh. 6 - Prob. 6.12DMPCh. 6 - Prob. 6.13DMPCh. 6 - Prob. 6.14DMPCh. 6 - Prob. 6.15DMPCh. 6 - Prob. 1CCTC
Knowledge Booster
Similar questions
- The audited accounts of Rattle Limited for year-end December 31, 2013, show a profit of $2,400,000 after charging the following: Depreciation $380,000 Legal fees $723,000 Bad debts $67,000 Donations $55,400 Accrued interest $51,000 Foreign travel $75,000 Repair and maintenance $216,000 Premium on insurance $88,000 Other Information: a. - Legal fees of $723,000 are for expenses in respect of the recovery of debts. b. - The company made donations of $55,400 to a registered charity. c. - The bad debt expense is a percentage of debtors at year-end. d. - Foreign travel expense was for a trip by the marketing manager to meet with potential buyers. e. - The capital allowances have been calculated at $142,000 f. - The premium paid of $88,000 was on insurance for the business’ property. g. - There were acquisition expenses of $45,000 associated with the expansion of the business. What is Rattle Ltd.’s corporate tax liability?…arrow_forwardA company's income statement for September reports a net income of $75,000. During the same month, the company paid $15,000 in dividends. If the beginning stockholders' equity was $0, what is the ending balance in stockholders' equity?arrow_forwardI need the correct answer to this general accounting problem using the standard accounting approach.arrow_forward
- I need help with this general accounting question using standard accounting techniques.arrow_forwardIf the risk-free rate is 0.02, the market risk premium is 0.07, and the beta of the stock is 1.2, what is the return of the stock?arrow_forwardI am trying to find the accurate solution to this financial accounting problem with appropriate explanations.arrow_forward
- Assume that Juanita is indifferent between investing in a corporate bond that pays 10.20 percent interest and a stock with no growth potential that pays a 6 percent dividend yield. Assume that the tax rate on dividends is 15 percent. What is Juanita's marginal tax rate?arrow_forwardI am trying to find the accurate solution to this general accounting problem with the correct explanation.arrow_forwardI need help with this general accounting problem using proper accounting guidelines.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Business Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:Cengage
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning- Business/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:Cengage
Business Its Legal Ethical & Global Environment
Accounting
ISBN:9781305224414
Author:JENNINGS
Publisher:Cengage
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage