Judgment Case 5–3
Satisfaction of performance obligations
• LO5–2
Cutler Education Corporation developed a software product to help children under age 12 learn mathematics. The software contains two separate parts: Basic Level (Level I) and Intermediate Level (Level II). Parents purchase each level separately and are eligible to purchase the access code for Level II only if their children pass the Level I exam.
Kerry purchases the Level I software at a price of $50 for his son, Tom, on December 1. Suppose Tom passed the Level I test on December 10, and Kerry immediately purchased the access code for Level II for an additional $30. Cutler provided Kerry with the access code to Level II on December 20.
Required:
When would Cutler recognize revenue for the sale of Level I and Level II software?
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INTERMEDIATE ACCOUNTING <CUSTOM LL>
- Section 2 of 4 Section 2_1v 11 12 13 14 15 16 17 18 19 20 18 of 25 Question # 18 A Report a Problem Choose the best option Revisit Mr Raman has three minor kids whose interest income is (Rs-2500, Rs 3500, Rs 4500)clubbed in his hand How much amount in totality he can claim as exempt under section 10 (32) O 3000. O 4000 O 4500 O Nil Deepanshu | Support +1 650-924-9221 +91 80 4719 0917 = metti P Type here to searcharrow_forward4G 46 10:14 O O O A 0.00 01:55:58 Remaining Multiple Choice On October 1, 2021, C company purchased a P1,800,000 car and designated it for the use of its non-resident alien executive. Compute the fringe benefit tax. P15,000 P24,231 P30,000 P45,000 59 of 60arrow_forwardProblem 7-22 Adoption Expenses (LO 7.7) Carl and Jenny adopt a Korean orphan. The adoption takes 2 years and two trips to Korea and is finalized in 2021. They pay $7,000 in 2020 and $7,500 in 2021 for qualified adoption expenses. In 2021, Carl and Jenny have AGI of $150,000. If an amount is zero, enter "0". If required, carry any division out to four decimal places and round final answers to the nearest dollar. a. What is the adoption credit Carl and Jenny can claim in 2021? 14,080 x Feedback b. How much credit could they claim if the adoption falls through and is never finalized? Feedback c. How much credit could they claim if their AGI was $221,660?arrow_forward
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- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT