1. On July 15, 2021, Ortiz & Co. signed a contract to provide EverFresh Bakery with an ingredient-weighing system for a price of $100,800. The system included finely tuned scales that fit into EverFreshs automated assembly line, Ortizs proprietary software modified to allow the weighing system to function in EverFreshs automated system, and a one-year contract to calibrate the equipment and software on an as-needed basis. (Ortiz competes with other vendors who offer ongoing calibration contracts for Ortizs systems.) If Ortiz was to provide these goods or services separately, it would charge $69,000 for the scales, $10,000 for the software, and $21,000 for the calibration contract. Ortiz delivered and installed the equipment and software on August 1, 2021, and the calibration service commenced on that date.

Assume that the scales, software and calibration service are all separate performance obligations. How much revenue will Ortiz recognize in 2021 for this contract?

• A ) $79,632

• B) $88,452

• C) $100,800

• D) $0

Indiana Co. began a construction project in 2021 with a contract price of $165 million to be received when the project is completed in 2023. During 2021, Indiana incurred $32 million of costs and estimates an additional $86 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed. 2. In 2022, Indiana incurred additional costs of $54 million and estimated an additional $36 million in costs to complete the project. Indiana (Do not round your percentage calculated):

A) Recognized $41.50 million gross profit on the project in 2022.

B) Recognized $43.00 million gross profit on the project in 2022.

C) Recognized $17.57 million gross profit on the project in 2022.

D) Recognized $5.00 million gross profit on the project in 2022.