I have these questions, I wanna the correct answers with explaination FOR ALL Q , please:

1-On December 15, 2016, Rigsby Sales Co. sold a tract of land that cost $3,800,000 for $5,000,000. Rigsby appropriately uses the installment sales method of accounting for this transaction. Terms called for a down payment of $440,000 with the balance in two equal annual installments payable on December 15, 2017, and December 15, 2018. Ignore interest charges. Rigsby has a December 31 year-end. In 2017, Rigsby would recognize realized gross profit of:

A- $ 0.

B- $547,200.

C- $447,200.

D- $597,200.

2-

Johnson sells $112,000 of product to Robbins, and also purchases $12,400 of advertising services from Robbins. The advertising services have a fair value of $9,200. Johnson should record revenue on its sale of product to Robbins of:

A- $108,800

B- $112,000

C- $102,800

D- $99,600

3-

Arizona Desert Homes (ADH) constructed a new subdivision during 2015 and 2016 under contract with Cactus Development Co. Relevant data are summarized below:

Contract amount		$2,595,000
Cost:	2015	1,110,000
	2016	510,000
Gross profit:	2015	665,000
	2016	310,000
Contract billings:	2015	1,297,500
	2016	1,297,500

ADH recognizes revenue upon completion of the contract.

In its December 31, 2015, balance sheet, ADH would report:

A- The contract asset, contract amount in excess of billings, of $1,297,500

B- The contract asset, cost and profits in excess of billings, of $477,500

C- The contract liability, billings in excess of cost, of $187,500

D- The contract asset, deferred profit, of $310,000

4-

Gupta Industries received a $290,000 prepayment from Packard Associates for the sale of new equipment. Gupta will bill Packard an additional $111,000 upon delivery of the equipment. Upon receipt of the $290,000 prepayment, how much should Gupta recognize for a contract asset, a contract liability, and accounts receivable?

rev: 08_24_2015_QC_CS-15471

A- Contract asset: $0; contract liability: $290,000, accounts receivable, $0.

B- Contract asset: $0; contract liability: $290,000, accounts receivable, $111,000.

C- Contract asset: $290,000; contract liability: $0, accounts receivable, $0.

D- Contract asset: $290,000; contract liability: $0, accounts receivable, $111,000.

5-

Maas LLP developed software that helps farmers to plow their fields in a manner that prevents erosion and maximizes the effectiveness of irrigation. Sunny Dale paid a licensing fee of $17,000 for a copy of the software. Although Sunny Dale can use the software as long as it wants, Maas expects that Sunny Dale will use the software for approximately 5 years. Maas does not anticipate any further interaction with Sunny Dale following transfer of the license. How much revenue should Maas recognize in the first year of the contract?

A- $3,400

B- $4,250

C- $17,000

D- $0

6-

Excerpts from Dowling Company's December 31, 2016 and 2015, financial statements and key ratios are presented below (all dollar values are in millions):

	2016	2015
Accounts receivable (net)	$27	15
Net sales	$170	84
Cost of goods sold	$98	83
Net income	$27	24
Inventory turnover	5.60
Return on assets	11.5%
Equity Multiple	2.48

Dowling's average inventory balance for 2016 is (Round your answer to one decimal):

A- 15.0.

B- 18.0.

C- 17.5.

D- 18.5.

7-

Reliable Enterprises sells distressed merchandise on extended credit terms. Collections on these sales are not reasonably assured, and bad debt losses cannot be reasonably predicted. It is unlikely that repossessed merchandise is in condition to be re-sold. Therefore, Reliable uses the cost recovery method. Merchandise costing $30,500 was sold for $57,250 in 2015. Collections on this sale were $21,800 in 2015, $15,300 in 2016, and $20,150 in 2017. In 2017, Reliable would recognize gross profit of:

A- $20,150.

B- $ 0.

C- $ 6,000.

D- $ 9,000.

8-

Reliable Enterprises sells distressed merchandise on extended credit terms. Collections on these sales are not reasonably assured, and bad debt losses cannot be reasonably predicted. It is unlikely that repossessed merchandise is in condition to be re-sold. Therefore, Reliable uses the cost recovery method. Merchandise costing $31,750 was sold for $58,500 in 2015. Collections on this sale were $20,600 in 2015, $14,800 in 2016, and $23,100 in 2017. In 2015, Reliable would recognize gross profit of:

A- $ 0.

B- $8,917.

C- $ 8,254.

D- $26,750

9-

Excerpts from Dowling Company's December 31, 2016 and 2015, financial statements and key ratios are presented below (all dollar values are in millions):

	2016	2015
Accounts receivable (net)	$28	$20
Net sales	$175	92
Cost of goods sold	$99	84
Net income	$28	25
Inventory turnover	5.50
Return on assets	11.6%
Equity Multiple	2.49

Dowling's return on equity for 2016 is (Round your answer to whole percentage):

A- 26%.

B- 29%.

C- 16%.

D- 7%.

10-

Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third of the sales price of a jet ski when they initially purchase the ski, and then pay another one-third each year for the next two years. Because Lake has little information about the ability to collect these receivables, it uses the installment sales method for revenue recognition. In 2015, Lake began operations and sold jet skis with a total price of $1,170,000 that cost Lake $585,000. Lake collected $390,000 in 2015, $390,000 in 2016, and $390,000 in 2017 associated with those sales. In 2016, Lake sold jet skis with a total price of $1,530,000 that cost Lake $918,000. Lake collected $510,000 in 2016, $405,000 in 2017, and $405,000 in 2018 associated with those sales. In 2018, Lake also repossessed $210,000 of jet skis that were sold in 2016. Those jet skis had a fair value of $78,750 at the time they were repossessed. In 2015, Lake would recognize realized gross profit of:

A- $585,000.

B- $ 0.

C- $390,000.

D- $195,000.