Lemon Corporation and Morley, Inc., have entered into an arrangement whereby Lemon will supply materials and 1,000

Question:

Lemon and Morley, Inc., have entered into an arrangement whereby Lemon will supply materials and 1,000 hours of its scientists' time for a project to be undertaken at Morley's research facility in Austin, TX. Morley will also contribute its scientists' time to the project.
Required:
For each of the following independent scenarios, does Lemon have a contract with a customer subject to ASC Topic 606?
1. Lemon has agreed to provide materials and scientists' time in exchange for a payment from Morley based on the quantities of each resource contributed.
2. Lemon has agreed to provide materials and scientists' time in exchange for a percentage of the profits from the sale of the product developed jointly by Lemon and Morley.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...