Question 1 Part A and B

A.

On July 1, 2018, Apache Company, a real estate developer, sold a parcel of land to a construction company for $3,080,000. The book value of the land on Apaches books was $1,320,000. Terms of the sale required a down payment of $220,000 and 13 annual payments of $220,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2019. How much revenue will Apache recognize for the sale (ignoring interest), assuming that it recognizes revenue at the point in time at which it transfers the land to the construction company? (Leave no cells blank - be certain to enter "0" wherever required.)

2018 Revenue=

2019 revenue=

B. Tulane Tires wrote a contract for a $104,000 sale to the new Garden District Tour Company. Tulane only anticipates a slightly greater than fifty percent chance that Garden will be able to pay the amounts that Tulane is entitled to receive under the contract. Upon delivery of the tires, assuming no payment has yet been made by Garden, how much revenue should Tulane recognize under U.S. IFRS?

Revenue under IFRS=