*In general, revenue is recognized when?

The performance obligation is satisfied

The sales price has been collected.

A contract has been identified.

A purchase order has been received.

*Bell Company incurred the following costs during 20x2: Merchandise purchased for resale: $40,000 Freight out: 2,000 Freight in: 1,000 How much should be included in the cost of the merchandise inventory?

• $41,000

• $43,000

• $40,000

• $42,000

*A used machine with a net book value of $25,000 and a fair market value of $33,000 was exchanged for a used delivery truck whose value is not clearly determinable. The transaction had commercial substance. The firm should record:

• A gain of $8,000.

• A loss of $8,000.

• No gain or loss.

• The truck at $25,000.