High Tech Corp developed software that helps warehouse managers create efficient picking instructions for filling customer orders onlineshoes com paid a licensing fee of $50,000 for the software onlineshoes com can use the software as long as it wants, however, High Tech Corp expects that onlineshoes com will use the software for approximately 4 years onlineshoes com will use the software without support or interaction from High Tech Corp How much revenue should High Tech Corp recognize in the first year of the contract $50,000 $12,500 $0 $10,000 On June 1, 2019, Sentre Partners entered into a 2 year contract to oversee leasing and maintenance for an office building The contract starts on July 1, 2019 Under the terms of the contract, Sentre will be paid a fixed fee of $500,000 per year and will receive an additional 15 of the fixed fee at the end of each year provided that building occupancy exceeds 95 Sentre estimates a 30 chance it will exceed the occupancy threshold, and concludes the revenue recognition over time is appropriate for this contract Assume Sentre estimates variable consideration as the most likely amount How much revenue should Sentre recognize on this contract in 2019 $250,000 $261,250 $287,500 $500,000 Chen Chen is an artist who sells her paintings under consignment at art galleries in Santa Fe, New Mexico After Chen Chen transfers a painting to an art gallery, the painting Should be counted in Chen Chen's inventory until the gallery sells it More information is needed to know who should count the painting in inventory Should be counted in either Chen Chen's or the gallery's inventory, depending on which incurred the cost of preparing the painting for display Should be counted in the gallery's inventory, as the gallery now possesses it Sanjeev enters into a contract offering variable consideration The contract pays him $5,000 month for six months of continuous consulting services In addition, there is a 60 chance the contract will pay an additional $5,000 and a 40 chance the contract will pay an additional $6,000, depending on the outcome of the consulting contract Sanjeev concludes that this contract qualifies for revenue recognition over time Assume Sanjeev estimates variable consideration as the expected value What is the amount of revenue Sanjeev would recognize for the first month of the contract $5,833 $5,900 $2,000 $5,000

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High Tech Corp developed software that helps warehouse managers create efficient picking instructions for filling customer orders. onlineshoes.com paid a licensing fee of $50,000 for

High Tech Corp developed software that helps warehouse managers create efficient picking instructions for filling customer orders. onlineshoes.com paid a licensing fee of $50,000 for the software. onlineshoes.com can use the software as long as it wants, however, High Tech Corp expects that onlineshoes.com will use the software for approximately 4 years. onlineshoes.com will use the software without support or interaction from High Tech Corp.. How much revenue should High Tech Corp recognize in the first year of the contract?

		$50,000
		$12,500
		$0
		$10,000

On June 1, 2019, Sentre Partners entered into a 2-year contract to oversee leasing and maintenance for an office building. The contract starts on July 1, 2019. Under the terms of the contract, Sentre will be paid a fixed fee of $500,000 per year and will receive an additional 15% of the fixed fee at the end of each year provided that building occupancy exceeds 95%. Sentre estimates a 30% chance it will exceed the occupancy threshold, and concludes the revenue recognition over time is appropriate for this contract.

Assume Sentre estimates variable consideration as the most likely amount. How much revenue should Sentre recognize on this contract in 2019?

		$250,000
		$261,250
		$287,500
		$500,000

Chen Chen is an artist who sells her paintings under consignment at art galleries in Santa Fe, New Mexico. After Chen Chen transfers a painting to an art gallery, the painting:

		Should be counted in Chen Chen's inventory until the gallery sells it.
		More information is needed to know who should count the painting in inventory.
		Should be counted in either Chen Chen's or the gallery's inventory, depending on which incurred the cost of preparing the painting for display.
		Should be counted in the gallery's inventory, as the gallery now possesses it.

Sanjeev enters into a contract offering variable consideration. The contract pays him $5,000/month for six months of continuous consulting services. In addition, there is a 60% chance the contract will pay an additional $5,000 and a 40% chance the contract will pay an additional $6,000, depending on the outcome of the consulting contract. Sanjeev concludes that this contract qualifies for revenue recognition over time.

Assume Sanjeev estimates variable consideration as the expected value. What is the amount of revenue Sanjeev would recognize for the first month of the contract?