Please answer all the questions in the attachment by 9am mountain time on 9/18/2016. Thank you!

Module 5 2. Companies that engage in long-term sales contracts such as construction projects often use the percentage of completion method to recognize revenue. This means that revenue is recognized in proportion to the project's completion. 4. Bed Bath and Beyond has a 60-day return policy. The company can report revenue on the full amount as soon as the merchandise is sold. 5. R&D expense is treated as an operating expense, not a capital expenditure, unless the R&D assets acquired have an alternative future use. \\ 11. When a company reports a deferred tax asset, it means that the company will receive a tax benefit, more likely than not, in the future. 12. For tax reporting purposes, companies typically transfer more of the asset's cost from the balance sheet to the income statement in the earlier years of the assets's life. Thus, companies record a deferred tax liability. 13. Revenue from a foreign subsidiary will be smaller in U.S. dollars when the dollar strengthens relative to the foreign currency. 14. A company with outstadning in-the-money employee stock options will report a diluted EPS that is lower than basic EPS. 15. Because diluted EPS include dilutive securities such as convertible securities and employee stock options, it must always be less than or equal to basic EPS. research work indefinitely. Under GAAP, Abbot must expense the $10 million in 2013. 18. Revenue from a foreign subsidiary will be larger in U.S. dollars when the dollar weakens relative to the foreign currency. 20. Net profits will be higher from foreign currency translations when the U.S. dollar weakens against a foreign currency. 21. A common source of deferred tax liabilties occurs when the company uses an accelerated depreciation method for both tax accounting and financial accounting purposes. 23. Channel stuffing is an improper method of recognizing revenue when sellers use their market power to induce customers to purchase more goods than they actually need. 24. A company who both realized and earned a sale before receiving a cash payment must recognize the amount to be received as unearned revenue. Multiple-Choice Questions 43. Koone Company operates a performing arts center. The company sells tickets for its upcoming season of six Broadway musicals and receives $420,000 cash. The performances occur monthly over the next six months. How much revenue would be recognized after the first month? 51. Central Home Builders Corp. executes a construction contract for $4,500,000. The total estimated construction cost for the contract is $4,000,000. The company provides the following additional information: Year 1 Year 2 Year 3 $1,000,000 $2,000,0 00 $1,000,0 00 Progress billings during year 900,000 2,400,00 0 1,200,00 0 Cash collected during year 750,000 1,750,00 0 125,000 Costs incurred to date What is the revenue and gross profit that Central Home Builders should recognize, respectively, for Year 1 under the percentage-of-completion method? 52. Central Home Builders Corp. executes a construction contract for $4,500,000. The total estimated construction cost for the contract is $4,000,000. The company provides the following additional information: Year 1 Year 2 Year 3 $1,000,000 $2,000,0 00 $1,000,0 00 Progress billings during year 900,000 2,400,00 0 1,200,00 0 Cash collected during year 750,000 1,750,00 0 125,000 Costs incurred to date What is the revenue and gross profit that Central Home Builders should recognize, respectively, for Year 2 under the percentage-of-completion method? 53. Central Home Builders Corp. executes a construction contract for $4,500,000. The total estimated construction cost for the contract is $4,000,000. The company provides the following additional information: Year 1 Year 2 Year 3 $1,000,000 $2,000,0 00 $1,000,0 00 Progress billings during year 900,000 2,400,00 0 1,200,00 0 Cash collected during year 750,000 1,750,00 0 125,000 Costs incurred to date What is the revenue and gross profit that Central Home Builders should recognize, respectively, for Year 3 under the percentage-of-completion method