If collectability of the revenue is highly uncertain, an appropriate method that should be used to recognize revenue would be:

Question 26 options:

	the percentage-of-completion method
	at the point of sale
	the proportional performance method
	the installment method

Pratt, Inc. paid its executives a $320,000 bonus based on profit results for the fiscal year ended December 31, 2010. Based on its master budgets for 2011, Pratt estimates its bonuses for the fiscal year ended December 31, 2011, will be $300,000. What amount, if any, should Pratt recognize as an expense for bonuses in its quarterly income statement for the three months ended March 31, 2011?

Question 27 options:

	$0
	$75,000
	$100,000
	$300,000

The Philip Company had the following information available for the fiscal year ended December 31, 2010: Net sales $1,600,000 Cost of goods sold 1,200,000 Merchandise inventory: January 1, 2010 200,000 December 31, 2010 400,000 Philip's inventory turnover for 2010 was:

Question 28 options:

	3 times
	4 times
	5.33 times
	6 times

For its year ended December 31, 2012, Cupressa Corporation, an S corporation, had net income per books of $216,000 which included $180,000 from operations and a $36,000 net long-term capital gain. During 2012, a total of $90,000 was distributed to the corporation's nine equal shareholders, all of whom are on a calendar-year tax basis. For 2012, each shareholder should report:

Question 29 options:

	$10,000 ordinary income and $2,000 net long-term capital gain
	$20,000 ordinary income
	$20,000 ordinary income and $4,000 net long-term capital gain
	$24,000 ordinary income
	None of the above