Wheater the contract has the significant financing component or not

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Answer 1

Question

Chapter 8, Problem 8.5E

a.

To determine

To identify: Wheater the contract has the significant financing component or not

b.

To determine

The amount of the sales revenue and interest revenue that is recognized by SB.

Given information:

Amount of the contract is $3,500,000 (Future value).

Rate of interest is 5%.

Time period is 4 years.

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Answer 2

Question

Chapter 8, Problem 8.5E

a.

To determine

To identify: Wheater the contract has the significant financing component or not

b.

To determine

The amount of the sales revenue and interest revenue that is recognized by SB.

Given information:

Amount of the contract is $3,500,000 (Future value).

Rate of interest is 5%.

Time period is 4 years.

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Answer 3

Question

Chapter 8, Problem 8.5E

a.

To determine

To identify: Wheater the contract has the significant financing component or not

b.

To determine

The amount of the sales revenue and interest revenue that is recognized by SB.

Given information:

Amount of the contract is $3,500,000 (Future value).

Rate of interest is 5%.

Time period is 4 years.

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Answer 4

Question

Chapter 8, Problem 8.5E

a.

To determine

To identify: Wheater the contract has the significant financing component or not

b.

To determine

The amount of the sales revenue and interest revenue that is recognized by SB.

Given information:

Amount of the contract is $3,500,000 (Future value).

Rate of interest is 5%.

Time period is 4 years.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 8.5E

a.

To determine

To identify: Wheater the contract has the significant financing component or not

b.

To determine

The amount of the sales revenue and interest revenue that is recognized by SB.

Given information:

Amount of the contract is $3,500,000 (Future value).

Rate of interest is 5%.

Time period is 4 years.

Answer 6

Chapter 8, Problem 8.5E

a.

To determine

To identify: Wheater the contract has the significant financing component or not

Answer 7

Chapter 8, Problem 8.5E

a.

To determine

To identify: Wheater the contract has the significant financing component or not

Answer 8

b.

To determine

The amount of the sales revenue and interest revenue that is recognized by SB.

Given information:

Amount of the contract is $3,500,000 (Future value).

Rate of interest is 5%.

Time period is 4 years.

Answer 9

b.

To determine

The amount of the sales revenue and interest revenue that is recognized by SB.

Given information:

Amount of the contract is $3,500,000 (Future value).

Rate of interest is 5%.

Time period is 4 years.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 8 - What are the primary issues involved in revenue...Ch. 8 - What is the fundamental principle underlying the...Ch. 8 - What is the fundamental principle underlying the...Ch. 8 - Prob. 8.4Q Ch. 8 - Prob. 8.5Q Ch. 8 - How is a performance obligation defined?Ch. 8 - What are the two criteria to define a good or...Ch. 8 - Prob. 8.8Q Ch. 8 - What principles regarding timing and measurement...Ch. 8 - Prob. 8.10Q

Wheater the contract has the significant financing component or not

Solution Summary: The author explains that the contract between the SB and US has the significant financial component because the time for the payment is four years later.

Concept explainers

To identify: Wheater the contract has the significant financing component or not

The amount of the sales revenue and interest revenue that is recognized by SB.

Given information:

Amount of the contract is $3,500,000 (Future value).

Rate of interest is 5%.

Time period is 4 years.

Want to see the full answer?

Chapter 8 Solutions

Wheater the contract has the significant financing component or not

Solution Summary: The author explains that the contract between the SB and US has the significant financial component because the time for the payment is four years later.

Concept explainers

To identify: Wheater the contract has the significant financing component or not

The amount of the sales revenue and interest revenue that is recognized by SB. Given information: Amount of the contract is $3,500,000 (Future value). Rate of interest is 5%. Time period is 4 years.

Want to see the full answer?

Chapter 8 Solutions

The amount of the sales revenue and interest revenue that is recognized by SB.

Given information:

Amount of the contract is $3,500,000 (Future value).

Rate of interest is 5%.

Time period is 4 years.