1. The Market Company won a contract to build a shopping center at a price of $300 million. The following schedule details the estimated and actual costs of construction each year as well as the total estimated cost. What amount of revenue will be recognized in Yr. 1 using the percentage completion method?

Yr 1 $40,000,000

Yr. 2 $60,000,000

Yr. 3 $70,000,000

Yr. 4 $30,000,000

Total $200,000,000

Select one:

a. $50,000,000

b. $60,000,000

c. $0

d. $40,000,000

e. $300,000,000

2.

Top Notch Accounting contracts with a customer to license and install payroll software. In addition to the software license, Top Notch will provide installation services as part of the contract, but installation can be performed by others because the software isnt customized. How many performance obligations exist?

Select one:

a. 2

b. 0

c. 1