Tulane tires wrote a contract for $100,000 sale to the new Garden district tour company. Tulane only appreciates greater than 50% chance that Garden will be able to pay the amount that Tulane is entitled to receive under contract. Upon delivery of the tires, assuming no payment has yet been made by Gardens, how much revenue should Tulane recognized under U.S. IFRS?
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Tulane tires wrote a contract for $100,000 sale to the new Garden district tour company. Tulane only appreciates greater than 50% chance that Garden will be able to pay the amount that Tulane is entitled to receive under contract. Upon delivery of the tires, assuming no payment has yet been made by Gardens, how much revenue should Tulane recognized under U.S. IFRS?
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- On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million. The promise to transfer the warehouse is determined to be a performance obligation. The contract states that if the warehouse is usable by November 30, 2019, Elkhart will receive a bonus of 600,000. For every week after November 30 that the warehouse is not usable, the bonus will decrease by 150,000. Elkhart provides the following completion schedule: Required: 1. Assume that Elkhart uses the expected value approach. What amount should Elkhart use for the transaction price? 2. Assume that Elkhart uses the most likely amount approach. What amount should Elkhart use for the transaction price? 3. Next Level What is the purpose of assessing whether a constraint on the variable consideration exists?Tulane Tires wrote a contract for a $100,000 sale of tires to the new Garden District Tour Company. Tulane only anticipates a slightly greater than 50 percent chance that Garden will be able to pay the amounts that Tulane is entitled to receive under the contract. Upon delivery of the tires, assuming no payment has yet been made by Garden, how much revenue should Tulane recognize under U.S. GAAP?Tulane Tires wrote a contract for a $100,000 sale to the new Garden District Tour Company. Tulane onlyanticipates a slightly greater than fifty percent chance that Garden will be able to pay the amounts that Tulaneis entitled to receive under the contract. Upon delivery of the tires, assuming no payment has yet been made byGarden, how much revenue should Tulane recognize under U.S. GAAP?
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- Taylor Construction Inc. signed a contract with FSU to build a student residential building with two million dollars by 2021 August; FSU can only pay 1.8 million dollars if Taylor cannot complete the construction by September 1. According to the consideration of the four transaction price types, which type is for the following transaction?Beautiful Company sold a set of washing machine and a dryer for a total contract price of P100,000 on December 15, 2021. The stand-alone selling prices of the washing machine and the dryer if sold separately are: 150,000 and 70,000, respectively. The washing machine was delivered on December 20, 2021 but the dryer was delivered only on January 5, 2022. *How many performance obligations are there in the contract? *How much is the revenue to be recognized in 2021? *How much is the revenue to be recognized in 2022?On June 30, 2018, Kimberly Farms purchased custom-made harvesting equipment from a local producer. In payment, Kimberly signed a noninterest-bearing note requiring the payment of $60,000 in two years. The fair valueof the equipment is not known, but an 8% interest rate properly reflects the time value of money for this type ofloan agreement. At what amount will Kimberly initially value the equipment? How much interest expense willKimberly recognize in its income statement for this note for the year ended December 31, 2018?