C4| The Income Statement EOC 4-43 Practice 4-3 Physical Capital Maintenance Refer to Practice 4-2. Assets with the same productive capacity as the assets comprising the $400,000 beginning asset balance had a current cost of $465,000 at the end of the year. Using the physical capital maintenance concept, determine the company's income for the year Practice 4-4 Computation of Income Using Matching The company sells custom-designed engineering equipment. During the most recent year, the company received the following customer orders: For Machine A selling price $125,000, production cost $67,000 For Machine B, selling price $235,000, production cost $140,000 For Machine C, selling price $72,000, production cost $41,000 For Machine D, selling price- $370,000, production cost $150,000 Machines A and C were completed and shipped during the year; the total revenue from the sale of these machines will be reported in the income statement for the year. Machines B and D have not yet been com- pleted; the total production cost incurred so far for these two machines is $240,000. The revenue from the sale of these two machines will not be reported in the income statement for the year. Using the transaction approach (the matching method), compute the company's income for the year Practice 4-5 Revenue Recognition The following information describes the company's sales for the year: (a) A sale for $100,000 was made on March 23. As of the end of the year, all work associated with the sale has been completed, Unfortunately, the customer is a significant credit risk, and the collection of the cash for the sale is very uncertain, No cash has been collected as of the end of the year The work associated with the sale has not yet begun but is expected to be completed early next year but all of the cash is expected to be collected early next year. As of the end of the year, all of the work (b) A sale for $130,000 was made on July 12. The $130,000 cash for the sale was collected in full on July 12. (c) A sale for $170,000 was made on November 17. No cash has been collected as of the end of the year, associated with the sale has been completed How much revenue should be recognized for the year