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Ivanhoe Consolidated has three operating divisions: Carla Vista Publishing Division, Wildhorse Security Division, and Crane Advisory Division. Each division maintains its own accounting system but

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Ivanhoe Consolidated has three operating divisions: Carla Vista Publishing Division, Wildhorse Security Division, and Crane Advisory Division. Each division maintains its own accounting system but follows IFRS. Carla Vista Publishing Division The Carla Vista Publishing Division sells large volumes of novels to a few book distributors, which in turn sell to several national chains of bookstores. Carla Vista allows distributors to return up to 30% of sales, and the distributors give the same terms to bookstores. While returns from individual titles fluctuate greatly, the returns from distributors have avaraged 20% in each of the past five years. A total of $6,300,000 of paperback novel sales were made to distributors during fiscal 2023. On November 30.2023 (the end of the fiscal year), $1,350,000 of fiscal 2023 sales were still subject to return privileges over the next sixmonths. The remaining $4,950,000 of fiscal 2023 sales had actual returns of 21%. Sales from fiscal 2022 totalling $1,800,000 were collected in fiscal 2023 less 18% returns. This division records revenue according to the revenue recognition method when the right of return exists. Wildhorse Security Division The Wildhorse Security Division works through manufacturers agents in various cities. Orders for alarm systems and down payments are forwarded from agents, and the division ships the goods fo.b. factory directly to the customers (usually police departments and security guard companies). Customers are billed directly for the balance due plus actual shipping costs. The company received orders for $5,400,000 of goods during the fiscal year ended November 30,2023 . Down payments of $540,000 were received, and $4,680,000 of goods were billed and shipped. Actual freight costs of $90,000 were also billed. Commissions of 10% on the product price are paid to manufacturing agents after goods are shipped to customers. Such goods are covered by the warranty for 90 days after shipment, and warranty claims have been about 1% of sales. Revenue is recognized at the point of sale by this division. Crane Advisory Division The Crane Advisory Division provides asset-management services. This division grew out of lvanhoe's own treasury and assetmanagement operations, which several of its customers asked to have access to. On January 1, 2023, Crane entered into a contract with Scutaro Co. to perform asset-management services for one year. Crane receives a quarterly management fee of 0.25% on Scutaro's assets under management at the end of each quarter. In addition, Crane receives a performance-based incentive fee of 20% of the fund's annual return in excess of the return on the S\&P 500 index at the end of the year. At the end of the first quarter of 2023, Crane was managing $2,160,000 of Scutaro assets. The annualized return on the portfolio was 6.4%. IThe S\&P. 500 index had an annualized return of 5.2%. (b) Calculate the revenue to be recognized in the 2023 fiscal year for the Carla Vista and Wildhorse divisions and the first quarter of 2023 for the Crane division of Ivanhoe in accordance with generally accepted accounting principles. Carla Vista Publishing Division Wildhorse Security Division Crane Advisory Division

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