1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
rusak2 [61]
3 years ago
15

Kinnamont Company manufactures farming equipment that includes navigational systems as part of the standard equipment package an

d offers optional training on any navigational systems for an additional fee. Smith Company enters into a contract with Kinnamont that includes a combine, a navigational system, and training. Identify the performance obligations to which Smith should allocate the transaction price:A. The combine, the navigational system, and the training as three separate performance obligations.
B. The combine including the navigational system and the training as two separate performance obligations.
C. The combine, the navigational system, and the training account for one performance obligation because they are all part of the same contract.
D. No performance obligations exist because the work on the contract, including the training, has not begun.
Business
1 answer:
mario62 [17]3 years ago
4 0

<u>Answer:</u> Option B

<u>Explanation:</u>

The contract between Kinnamont and Smith covers two obligations that needs to be performed one is to provide a navigational system and other is training. Both the obligations needs to be provided together as a combine. The accounting for the contract which has multiple performance obligations should allocate transaction pricing separately for each obligation that needs to be performed.

So the transaction pricing in this scenario has to be allocated for navigational system and training separately. The price is not split between the obligations but the price has to be measured based on the work done.

You might be interested in
On January 1, 2017, Sheridan Company had a balance of $417,000 of goodwill on its balance sheet that resulted from the purchase
Thepotemich [5.8K]

Answer:

patent      301,350 debit

       cash                 301,350 credit

franchise 633,600 debit

        cash               633,600 credit

development expense   189,000 debit

         cash                                    189,000 credit

year-end adjustment:

amortization expense   50,225 debit

         patent                                  50,225 credit

amortization expense   31,680‬ debit

         patent                                  31,680‬ credit

Explanation:

The patent and franchise will be activate as there is a certain possibility to produce positive cashflow in the future.

They will be adjusted at year-end for amortization:

301,350 / 6 = 50,225 amortization on patent

633,600 / 10 = 63,360 amortization on franchise

As it was concede on July 1st then, we will do half-year

63,360 / 2 = 31,680‬

The development cost will be treated as expense as there is no precise information that can determined the development cost which yield a positive outcome.

8 0
3 years ago
Jane Doe, who has substantial personal wealth and income, is considering the possibility of starting a new business in the chemi
Kaylis [27]

Answer: The correct answer is "S corporation, to gain some tax advantages and also to obtain limited liability. ".

Explanation: S corporation is the legal form of business organization that probably adapts best to her needs because it would be a great advantage to have tax benefits and in turn limit the liability only to the capital contributed, this means that to meet your obligations you only respond with capital from the company and not with Jane's own assets.

7 0
3 years ago
Revocation of an offer is valid once it is __________________.
Amiraneli [1.4K]

Revocation of an offer is valid once it is <u>B. received</u> by the offeror (the person making the offer), meaning that it has been communicated to the other party by the offeree.

<h3>What is the revocation of an offer?</h3>

The revocation of an offer is the nullification or canceling of an offer by the offeree.  It becomes effective when the offeree communicates to the offeror before acceptance.

Once the revocation has been communicated, the offer is no longer considered valid and cannot legally be accepted. The implication is that revocation goes into effect immediately it has been communicated to the relevant party.

Thus, revocation of an offer is valid once it is <u>B. received</u> by the offeror.

Learn more about offer revocations at brainly.com/question/26532053

5 0
2 years ago
Read 2 more answers
For make - or - buy decisons, a supplliers ability to maintain secrecy of intellectual property is considered a?
kenny6666 [7]

For make-or-buy selections, a provider's ability to maintain the secrecy of intellectual property is taken into consideration as an opportunity price.

Intellectual property is a class of property that consists of intangible creations of the human intellect. there are numerous sorts of highbrow property, and a few international locations apprehend extra than others. The quality-recognized types are copyrights, patents, trademarks, and exchange secrets and techniques. intellectual belongings (IP) refers to creations of the mind, consisting of innovations; literary and creative works; designs; emblems, names, and pictures used in commerce.

Examples of the intellectual property consist of a writer's copyright on an e-book or article, an exceptional brand design representing a soft drink agency and its products, unique design elements of a web website, or a patent on a specific technique to, for instance, manufacture chewing gum.

Learn more about Intellectual property here: brainly.com/question/1083623

#SPJ4

5 0
2 years ago
Which one of the following statements correctly states a relationship?
Anon25 [30]

Answer:

D

Explanation:

i think

4 0
3 years ago
Other questions:
  • The fundamental idea behind _____ is that corporations have duties that go beyond lawful execution of their economic function.
    10·1 answer
  • ​________ is used to describe how changes in price affect a​ consumer's purchasing​ power, and​ ________ is used to describe how
    13·2 answers
  • 3
    6·1 answer
  • The U.S. federal government can spend money in a variety of ways. For example, the government could build a major new naval trai
    12·2 answers
  • If Barcelona has a core staff of restaurant managers and head chefs and contracts with staffing agencies to fill all other posit
    12·1 answer
  • Consider the single factor APT. Portfolio A has a beta of 1.3 and an expected return of 21%. Portfolio B has a beta of .7 and an
    6·1 answer
  • Book Bound sells a wide variety of books to retail bookstores. Book Bound recently published two new books: a popular mystery no
    8·1 answer
  • The government of Argentina has taken over all the country's banks. No compensation has been paid. Some U.S. citizens and busine
    9·1 answer
  • Sharon and Roger decide to open a dry-cleaning business. They borrowed money from a bank and hired one employee. What is one adv
    15·1 answer
  • Where is a more popular place a thief would go to troy to steal your personal information?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!