Question
AuctionCo.com sells used products collected from different suppliers. Assume a customer ordered a used bicycle through AuctionCo.com for $30. The cost of this bicycle is
AuctionCo.com sells used products collected from different suppliers. Assume a customer ordered a used bicycle through AuctionCo.com for $30. The cost of this bicycle is $20 to AuctionCo.com. The bicycle will be shipped to the customer by the original bicycle owner. |
| Required: |
| 1. | Assume AuctionCo.com takes control of this used bicycle before sale. Under this assumption, how much revenue would the company recognize? |
| 2. | Assume AuctionCo.com never takes control of this used bicycle before sale. Under this assumption, how much revenue would the company recognize? |
| 3. | Which assumption do you think is more appropriate for the AuctionCo.com case? | ||||
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Farmers Irs Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
1304134237, 978-1304134233
