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bixtya [17]
2 years ago
11

On June 1, 2021, Emmet Property Management entered into a 2-year contract to oversee leasing and maintenance for an apartment bu

ilding. The contract starts on July 1, 2021. Under the terms of the contract, Emmet will be paid a fixed fee of $60,000 per year and will receive an additional 10% of the fixed fee at the end of each year provided that building occupancy exceeds 80%. Emmet estimates a 25% chance it will exceed the occupancy threshold, and concludes the revenue recognition over time is appropriate for this contract. Assume that Emmet accrues revenue each month, and estimates variable consideration as the most likely amount. On November 1, Emmet revises its estimate of the chance the building will exceed the 80% occupancy threshold to a 60% chance. What is the total amount of revenue Emmet should recognize on this contract in November of 2021
Business
1 answer:
vlada-n [284]2 years ago
6 0

Answer:

$7,500

Explanation:

Calculation to determine the total amount of revenue Emmet should recognize on this contract in November of 2021

First step is to calculate the revenue amount recognized for July, August, September, and October

Recognized revenue =$60,000 × 4/12

Recognized revenue = $20,000

(July, August, September, and October=4 months )

Second step is to calculate the revenue amount to be recognized at the beginning of November

Recognized revenue= $60,000 + ($60,000 × 10%)

Recognized revenue= $66,000

Third step is to calculate the revenue amount recognized at the end of November

Recognized revenue=$66,000 × 5/12

Recognized revenue = $27,500

Now let calculate the total amount of revenue Emmet should recognize on this contract in November of 2021

Total Recognized revenue=$27,500 - $20,000

Total Recognized revenue=$7,500

Therefore the total amount of revenue Emmet should recognize on this contract in November of 2021 will be $7,500

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mixas84 [53]

Answer:

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6 0
2 years ago
When total demand outpaces actual output in the economy, the economy usually enters?
alexandr402 [8]
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8 0
3 years ago
Suppose on august 27, there were 1,455 stocks that advanced on the nyse and 1,553 that declined. the volume in advancing issues
butalik [34]

Answer:

trim ratio = 1.15  and bearish

Explanation:

given data

stock = 1,455

decline = 1,553

volume in advancing issues = 852581

volume in declining issues = 1,058312

solution

we get here the trim ration is express here as

trim ratio = (stock ÷ decline)  ÷ ( advancing issues ÷ declining issues )   ...............................1

put here value and we get trim ratio

trim ratio =  \frac{\frac{1455}{1553} }{\frac{852581}{1058312} }    

solve it we get '

trim ratio = 1.15

and here we see trim is greater than 1 so

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4 0
3 years ago
Entertainment Tonight, Inc. manufactures and sells stereo systems that include an assurance-type warranty for the first 90 days.
Solnce55 [7]

The estimated cost of the assurance-warranty is $350. The accounting for warranty will include a credit to Unearned Warranty Revenue, $900

Explanation:

  • Entertainment Tonight, Inc. manufactures and sells stereo systems that include an assurance-type warranty for the first 90 days. Entertainment Tonight also offers an optional extended coverage plan under which it will repair or replace any defective part for 2 years beyond the expiration of the assurance-type warranty. The total transaction price for the sale of the stereo system and the extended warranty is $3,000. The standalone price of each is $2,300 and $900, respectively. The estimated cost of the assurance-warranty is $350. The accounting for warranty will include a credit to Unearned Warranty Revenue, $900.
  • Unearned extended warranty revenue is given to be as an unearned revenues in accrued liabilities in the balance sheets.
  • Revenue which comes from separately priced, self-insured service contracts is reffered at the point of sale.
  • Unearned revenue is a money which is received from a customer for work that has not been performed still.

7 0
2 years ago
The CEO of Ridgeway, Inc., realizes that the company’s survival depends on developing and acquiringknowledge. Which of the follo
aleksandr82 [10.1K]

Answer:

The correct answer is B

Explanation:

When the company want that their employees, need to have the knowledge and develop their knowledge as well, they need to arrange or conduct the program of the training as well as programs of the recruiting.

As the CEO, realizes and states that the firm or the business survival grounded on the acquiring as well as the developing the knowledge. So, in order to follow what the CEO said, one must go through the proper training as well as the programs of the recruiting.

7 0
3 years ago
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