Answered: How many performance obligations does…

Business

Accounting

How many performance obligations does Jane have in this transaction? a. 1 b. 2 c. 3 d. 4

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 55P

See similar textbooks

Related questions

Q: d $2,500 for cleaning up the lawn after the one-month selling period. BB, WW and FF decide that net…

A: Given: The data is given as, BB- 170000 WW-260000 FF-60000

Q: Justify Your answer keeping in view the ingredients of undue influence as laid down in Contract Act,…

A: Contract as per the Indian Contract Act, 1872 is - “ an agreement i.e offer and acceptance…

Q: Dr Greg Marshall acquired a house in Windsor under a contract dated 1 January 2011 for $560,000. He…

Q: Mr. O’s employer requires him to use his own vehicle for work and pay all of the vehicle’s operating…

A: Tax is the liability which has to be paid by the individual and the corporation to the Federal…

Q: BB, WW and FF agree to sell construction tools for a period of one month. BB agrees te the lawn of…

A: Given: The data is given as, BB- 170000 WW-260000 FF-60000

Q: Mike is an independent contractor in 2021. Mike attends a professional trade association in Los…

A: a. The total expenditure allowed as deduction for business purpose would be of only business…

Q: One July 1, 2020 Bob signed an agreement to operate as a franchisee of abc co for an initial…

A: Down payment in this case, is the initial or upfront amount that need to be made while entering into…

Q: Mike leased his land to Leomar for 2 years beginning July 1, 2018. Leomar would pay monthly rental…

A: monthly rental = 100000 rent paid for 3 months ( july to october ) = 100000 * 3 = 300000 the…

Q: Keith is an employee of a real estate company. He has negotiated car benefits with his employer.…

A: FBT stands for Fridge Benefit tax. It is the amount of tax to be paid on the employee's fringe…

Q: J is a self-employed interior decorator. Her business location is in New Brunswick NJ. In the…

Q: Fred has been unemployed for six months. He has been using the Jobs R Us Pty. Ltd. employment agency…

A: As per the US Federal Tax law, all incomes earned by an individual from different sources are taxed…

Q: Martin traveled 1,500 kms with his spouse, to start a new job in March of 2021. Martin earned…

A: As stated in the question,Martin went 1,500 kilometres with his wife to begin a new work in March of…

Q: Kerry purchases the Level I software at a price of $50 for his son, Tom, on December 1. Suppose Tom…

A: The revenue recognition: The revenue recognition principle refers to the revenue that should be…

Q: Ryo Kiritani is a hair dresser and earns income by styling hair of well-known people. He initially…

A: the adjusted income is the income that is recorded as an income at the end of the year. The adjusted…

Q: BB, WW and FF agree to sell construction tools for a period of one month. BB agrees to construct a…

A: The question is based on the concept of Partnership Accounting.

Q: BB, WW and FF agree to sell construction tools for a period of one month. BB agrees the lawn of FF.…

A: Given: The data is given as, Brisk- 170000 Whisk-260000 Frisk-60000

Q: BB, wW and FF agree to sell construction tools for a period of one month. BB agrees to construct a…

A: Gross Profit: It is the difference between direct income and direct expenses. In the given scenario,…

Q: Riya writes an email promising to sell her car to Manish for $500, and Manish replies that he will…

A: An executory contract is a contract that has not been performed fully by both parties. Either one…

Q: Malky is manager of York Steel Ltd. His contract is for 10 years. In the third year Malky enters…

A: Capital: It is the amount which involve no gain to the taxpayer and it is not taxable. Income: It is…

Q: of cost. All other sales are to be made at 100% mark-up on cost. The activity of the joint…

A: Profit Sharing Ratio: It is the ratio in which the profits or losses of a business unit are shared:

Q: Jack is a lawyer who requires that his clients pay him in advance of legal services being rendered.…

A: Revenue earned during January = 8,000 x 75% = 6,000

Q: Mr. Latif is working as an accountant in a general partnership namely 'Al Majan' for the last two…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: loyment from Vets2U Pty Ltd. His salary package includes a company car worth $45,000. On the day the…

A: Fringe benefit refers to the additional benefits a company provides its employees beyond the defined…

Q: On April 1, Year 6, Bob the Builder traded in an equipment with a book value of $2,000 (initial cost…

A: SOLUTION DEPRECIATION MEANS MONETARY VALUE OF AN ASSETS DECREASES OVER TIME DUE TO USE OF WEAR AND…

Q: John signs a 1-year contract with Fitness The First Gym. The terms of the contract are that John is…

A: Answer: Particulars Amount Non refundable fee 12000 Annual membership 12000 (1000 per…

Q: The Brewers contracted to purchase Dower House from McAfee. Then, several weeks before the May 7…

A: Case summary: The case deals with B Company and M Company in the purchase of a Dower house. B…

Q: Matt bought a motorcycle from Dean, promising in writing to pay Dean $200 per month for 10 months.…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: BB, WW, and FF agree to sell construction tools for a period of one month. BB agrees to construct a…

A: Compute the cost of goods sold by adding the sales of BB, WW and FF and divide the resulting value…

Q: ta owes Christopher PHP80,000 which is due on April 20. On the other hand, Christopher owes Dakota…

A: Payment due on the day of the payment should be considered only and payment due before that is…

Q: b) Puan Aina is currently a sales director of Gamuda Bina Sdn Bhd. She joined the company in year…

A: Tax is a charge on taxable income. When-ever the income goes above the mentioned tax free income…

Q: Keith Williams and Brian Adams were students when they formed a partnership several years ago for a…

A: The partnership comes into existence when two or more persons agree to do the business and share the…

Q: Dr. John Holm signed a two-year employment agreement with Gateway Anesthesia Associates, PLLC.…

A: Please find the answer to the above question below:

Q: On March 31, 20x1, ABC Company provides a license to Mr. X. Under the license agreement, Mr. X pays…

A: Revenues in connection with the term licenses are recognized proportionately over the license term.

Q: ABC Inc, a telecommunications operator, entered into a contract with Mr. X on March 1, 20x2. In line…

A: Revenue recognition principle says that all revenues are recognised by the business when these are…

Q: A. Amirah works as Accounts Executive in Blulnc Sdn Bhd and receives annual salary of RM72,000. In…

Q: DITO Corp. a telecommunications operator, entered into a one-year contract with Kim on March 1,…

A: Here their are two performance obligations 1.Apple I-phone handset 2. Network service As per IFRS…

Q: Employee has worked for Employers incorporated business for several years at a salary of 80K per…

A: The employee has an annual income of $80,000 for next two years. For the next two years, the…

Q: In September, Amina hired Bryan as a delivery man. Bryan was to commence work on 1 November. On 1…

A: A layoff is a termination of employment at the will of the employer. It may be temporary or…

Q: BB, WW and FF agree to sell construction tools for a period of one month. BB agrees to construct a…

A: Introduction:- For one month, BB, WW, and FF agree to offer building tools. BB offers to build a…

Q: In September of year 1, Jašon agrééd tó à čóntrăct in which he agreed to redo the floors in an…

A: Which amount Should Jason report as Income from this job in Year 1 and Year 2 ? Ans. Income for Year…

Q: A professional engineer who teaches at a university also does consulting astime permits. Her efforts…

A: Revenue is the inflow of cash due from sales or from any other sources. Main source of revenue of a…

Q: Blaire purchased a new car .He got an invioce for $ 4050 dated march 27 with terms 3/10 ,2/20…

Q: Peyton sells an office building and the associated land on May 1 of the current year. Under the…

A: Sales Contract:-It is a contract held between two parties and this agreement legally binds the two…

Q: Simon Sharpe executed and delivered to Ben Bates a negotiable promissory note payable to the order…

A: Promissory note can be defined as a financial instrument which is similar as a note payable and bind…

Q: In December 2016, Marcus purchased a car at RM 60,000 from Toyota UMW Sdn. Bhd. through a hire…

A: Hire Purchase Agreement are the agreement of sale of expensive assets by the owner to the hirer by…

Q: Ms. Carla Babo, a self-employed individual, rents out a five-room apartment. One of the rooms is…

A: Answer: The room is rented to Mr Maco on March 1, which means that there was only 10months of the…

Q: AA, BB, and CC agree to sell construction tools for a period of one month. AA agrees to construct a…

A: Joint operation: When two or more people or entities tie up to perform a business operation for a…

Concept explainers

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.

Question

Jane sells a piece of equipment to Derek for $1,800 on August 1. The equipment cost $1,000. The
equipment is picked up by Derek on August 10. The contract also includes a 12-month service
plan. How many performance obligations does Jane have in this transaction?
a. 1
b. 2
c. 3
d. 4

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Incorrect option:

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Hassad owns a rental house on Lake Tahoe. He uses a real estate firm to screen prospective renters, but he makes the final decision on all rentals. He also is responsible for setting the weekly rental price of the house. During the current year, the house rents for 1,500 per week. Hassad pays a commission of 150 and a cleaning fee of 75 for each week the property is rented. During the current year, he incurs the following additional expenses related to the property: a. What is the proper tax treatment if Hassad rents the house for only 1 week (7 days) and uses it 50 days for personal purposes? b. What is the proper tax treatment if Hassad rents the house for 8 weeks (56 days) and uses it 44 days for personal purposes? c. What is the proper tax treatment if Hassad rents the house for 25 weeks (175 days) and uses it 15 days for personal purposes?
Lori Kinmark works as a jeweler for a local company. She earns 1,000 per week, plus a year-end bonus of 2,000. Kinmark also earns an additional net self-employment income of 28,000 per year. ____1.Compute Kinmarks annual earnings from employment. ____2.Compute Kinmarks total earnings from her job and from self-employment income. ____3.How much self-employment income should Kinmark include in computing taxable self-employment income for OASDI taxes? ____4.What are the total FICA taxes on her self-employment earnings?
In September, Amina hired Bryan as a delivery man. Bryan was to commence work on 1 November. On 1 October, Amina wrote to Bryan telling him that, despite their agreement, economic circumstances were such that she no longer required his services. Can Bryan sue Amina? Explain your answers in light of the principles learned on breach of contract. (maximum 500 words)
Before starting to render his service, Paolo collected an advance payment of P2,000 for the acceptance of the job contract. When the required service from Paolo was completed, Paolo received P8,000 cash service fee after deducting the P2,000 advance payment, plus an office machine with cash price value of P3,000 and P2,500 cost to the seller. The gross service income of Paolo is
BB, WW and FF agree to sell construction tools for a period of one month. BB agrees to construct a stand on the front of the lawn of FF. FF will be paid P2,500 for cleaning up the lawn after the one month selling period. BB, WW and FF decide that net income, if any will be allocated first by the P2,500 payment to FF and then by a 40% commission on individual sales. The balance will be distributed 75% to BB and 25% to WW. They agree that a cash box will complicate the matters and that all purchases and sales transactions will be out of-pocket and the responsibility of the individual. Sales to BB, WW and FF are to be at cost, except that the ending inventory may be purchased at 50% of cost. All other sales are to be made at 100% mark-up on cost. The activity of the joint operation is as follows: a. BB construct the stand on the front of the lawn at a cost of P10,000; b. BB pays for P100,000 for various construction tools. FF pays P5,000 for permit to operate the concession or business;…
BB, WW, and FF agree to sell construction tools for a period of one month. BB agrees to construct a stand on the front of the lawn of FF. FF will be paid P2,500 for cleaning up the lawn after the one-month selling period. BB, WW and FF decide that net income, if any will be allocated first by the P2,500 payment to FF and then by a 40% commission on individual sales. The balance will be distributed 75% to BB and 25% to WW. They agree that a cash box will complicate the matters and that all purchases and sales transactions will be out-of-pocket and the responsibility of the individual. Sales to BB, WW and FF are to be at cost, except that the ending inventory may be purchased at 50% of cost. All other sales are to be made at 100% mark-up on cost. The activity of the joint operation is as follows: BB construct the stand on the front of the lawn at a cost of 10,000 BB pays for P100,000 for various construction tools. FF pays P5,000 for permit to operate the concession or business BB…
Riya writes an email promising to sell her car to Manish for $500, and Manish replies that he will pay Riya on the 24th of the month. On the 24th, Manish pays Riya and she gives him the title to the car. Manish and Riya have a(n) __________. a.) unilateral contract b.) implied contract c.) executory contract d.) executed contract
Danny Floro works as a caretaker with a monthly salary of P5,000 in the house of Atty. Panfilo Salango. In the current month, Atty. Salango successfully defended the former against a vehicular accident case. The prevailing lawyer’s fee of Atty. Salango is P6,000, which they agreed that Mr. Floro, instead of paying his employer, shall not receive cash for the said month. How much is compensation income of Floro in the current month?