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givi [52]
3 years ago
15

On November 1, 2019, Gerakos Corporation sold software and a six-month technical support contract to a customer for $80,000. Ger

akos sells the same software without technical support for $60,000. It does not sell technical support separately. Gerakos uses the residual method to allocate the transaction price.
Business
1 answer:
Brilliant_brown [7]3 years ago
8 0

Answer:

The question requirement relates to the amount of revenue to be recognized in year 2019 and 2020 respectively.

2019 Revenue is $66,667

2020 Revenue $13,333

Explanation:

The total price of $80,000 is split into $60,000 which is standalone  price of the software and the balance relates of $20,000($80,000-$60,000) relates to technical support.

It is important to note that the selling price of software of $60,000 is due for recognition as revenue, while technical support fee of $20000 should be recognized on a progress basis,for each month the technical support has been rendered.

2019 Revenue

Software                                                 $60,000

Technical support($20000*2/6)             $6,667

Total                                                         $66,667

2020 Revenue

($80,000-$66,667)                                  $13,333

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leva [86]

Answer:

increase both aggregate supply and real output.

Explanation:

A rise in productivity makes it possible for each and every firm to rise the greater amount of output. due to this  aggregate supply will rise which will lead to increase in the real output.

Also the rise in productivity increase the aggregate supply and the AS curve would be shifted to right that rise the real output but reduce the level of the price in the new equilibrium output level

Therefore the above represent the answer  

6 0
3 years ago
Assume that the money demand function is (M / P)d = 2,200 – 200r, where r is the interest rate in percent. If the price level is
Wittaler [7]

Answer:

The money supply should be set at 800

Explanation:

In this question, we are asked to calculate the value at which Fed should set the money supply at after fixing the interest rate at 7 percent.

We proceed as follows;

Let the new money supply be M.

To fix the interest rate at 7%, r= 7 and P = 2

(M/P)d = 2,200 - 200r

= 2200 - 200(7)

=2200-1400

= 800

M = 800

8 0
2 years ago
Which option is the best way to organize a document into topics?
Ahat [919]
Your answer will be B using headers because when your putting a header on your essay you are including a topic which organizing what this paragraph (or paragraphs) will be about also its not A because those are use for titles its not C because those may organize details but you use them when your writing facts about a person, place, or thing when it came down to rather B, and D I choose B because using a number lists is for lists yes it keeps things organized but your questions is about "organize a document" so it makes it B.                                                                                                                                                                     Your answer is B.
4 0
3 years ago
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7 0
3 years ago
S Corporation makes 41,000 motors to be used in the production of its sewing machines. The average cost per motor at this level
arsen [322]

Answer:

$112,750

Explanation:

Particulars                                Cost of making               Cost of buying

Direct material                       41,000*10=410,000                  0

Direct labor                            41,000*9=369,000                   0

Variable manuf. overhead    41,000*3.70=151,700                0

Fixed manuf. overhead         41,000*4.65=190,650    41,000*4.65=190,650

Outside supplier's price                      0                        41,000*25.45=1,043,450

Total cost                                      $1,121,350                      $1,234,100

Financial advantage of making the motors = $1,234,100 - $1,121,350

Financial advantage of making the motors = $112,750

7 0
2 years ago
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