QUESTION 1 A contract was signed in March for legal work completed by a law firm in April. The client agreed to pay for the completed work in May and the law firm received payment in early June. When should the lawfirm recognize the revenue? March April May June QUESTION 2 Whistleblower Corp. enters a contract on October 1st, 2019 to provide Drumph Corp. with a package of services to begin immediately. The services include encrypted se rver storage for 12 months, legal advice for 24 months and public relations services for 24 months. The total package price for these services is 3 million dollars. The products separately are priced as follows: storage services (12 months) 500,000, legal advice (24 months) 2,000,000 and public relations services (24 months) 1,000,000. How much revenue should Whistleblower Corp. recognize on the contract for fiscal year ending December 31, 2019 (rounded to the nearest thousands)? 500,000 429,000 375,000 438,000 QUESTION 3 Conrad Construction Corp. has a $20 million contract to construct a building. The company estimates a gross profit of $4 million. During the current year, the company incurred $2 million of costs on the contract. Under the percentage-of-completion method, how much will Conrad Construction Corp. report as revenue in the current year? 2,500,000 2,000,000 10,000,000 4,000,000