Pita Pal sells fast-food franchises. Pita Pal receives $75,000 from a new franchisee for providing initial training, equipment, and furnishings that together have a stand-alone selling price of $75,000. Pita Pal also receives $36,000 per year for use of the Pita Pal name and for ongoing consulting services (starting on the date the business is open). Rachel became a Pita Pal franchisee on March 1, 2016, and on May 1, 2016 Rachel had completed training and was open for business. How much revenue in 2016 will Pita Pal recognize for its arrangement with Rachel?

a. $0

b. $75,000

c. $99,000

d.$111,000

2) Cashmere Soap Corporation had the following items listed in its trial balance at 12/31/2018:

• Currency and coins: $ 650
• Balance in checking account: $2,600
• Customer checks waiting to be deposited: $1,200
• Treasury bills, purchased on 11/1/2018, mature on 4/30/2019: $3,000
• Marketable equity securities: $10,200
• Commercial paper, purchased on 11/1/2018, mature on 1/30/2019: $5,000

What amount will Cashmere Soap include in its year-end balance sheet as cash and cash equivalents?

a.$9,450.

b.$12,450.

c.$7,450.

d.$19,650.