1. You go to Starbucks and purchase a latte coffee along with a donut. In the coffee you ask for extra milk and sugar. The coffee costs $4 and the donut costs $2. You receive the bill , which reflects the coffee price of $4 and the donut price for $2 for a total of $ 6 , which you pay and then go to a table and start enjoying your meal.

Q= Discuss each of the 5 steps of the revenue recognition process in this transaction?

Include in your answer the question as to when you received control of the assets.

2.ABC provides tax return preparation services for its client base. The cost of each tax return is $100. Upon payment, the customer is provided a coupon entitling her to a 20% discount on next years tax return preparation fee. ABC has estimated, based on past experience, that 75% of the customers will use this coupon.

Q1- How many performance obligations does ABC have in the above transaction?

Q2-What is the transactions price?

Q3-Allocate the transactions price between the performance obligation(s)?

Q4-How much revenue did ABC earn in Year 1 from one single paid tax return?