On June 1, Freedom Distributions (FD) shipped 100 TVs to Universal TV (UTV) on consignment. FD buys these TVs from their supplier for $600 each and sells them to UTV for $800. UTV then retails them for $1,200 each. By the end of June, Universal TV reported that they had sold 60 of these TVs, and remitted the appropriate amount to FD. How much revenue should be recorded by FD in connection with this transaction?

$36,000

$60,000

$72,000

$48,000

2)

Halo Company entered into a contract with Ringo Corporation, in which Halo agreed to provide Ringo with building supplies. Ringo agreed to pay a total of $27,000 at delivery. Under the contract-based view, Halos net contract position can be assumed to be

$0.

$27,000.

$9,000.

$18,000.

3)

At the end of year 2, the accounting records for a multi-year construction project indicate actual costs incurred to date of $3,200,000, and the most recent estimate of total costs of $9,500,000. Assuming the percentage-of completion method is used, to one decimal, at the end of year 2 the project is

31.2% complete.

26.1% complete.

33.7% complete.

25.2% complete.

4)

A product and service are bundled together and sold to customers for $450. The fair values of the product and service are $350 and $150 respectively. Under the residual method, how much would be allocated to the product?

$150.00

$300.00

$388.89

$350.00