On October 1,2016,SM Co.signed a two-year contract to provide handyman services to OU Associates, with the contract to start immediately.OU agreed to pay SM $12,000 for the two-year period.SM is confident that OU will pay that amount, but payment is not scheduled to occur until 2017.How much revenue should SM recognize in 2016.

$0

$6,000

$10,500

$12,000

$1,500

On June 30,2017,EdelmanEnterprisespurchased a 5-year insurance policy on its equipment for $4,000,000. This is the only insurance policy Edelman has in place. As of December 31, 2018, what would be the balance for EdelmanEnterprise's prepaid insurance?

$2,100,000

$2,400,000

$2,800,000

$1,000,000

$4,000,000