Question 1

Table Corp. (Table) is a manufacturer of custom tables and chairs built using reclaimed wood. On April 30, 2020, Table sold and delivered a boardroom table and 12 chairs to Legend Inc. If the customer had paid that day, the total cost would have been $35,000. Instead, Table accepted $15,000 cash on April 30, with a further payment of $25,000 to be made on April 30, 2022. Table has a June 30 year end and prepares its financial statements in accordance with IFRS. What is the total interest revenue that Table will record as a result of this contract for its June 30, 2020, year end (round the interest rate to one decimal point)?

Question 1 option

A	$393
B	$492
C	$727
D	$2,360

Question 2

Which of the following statements regarding the recognition of expenses related to long-term contracts under IFRS is true?

Question 2 options:

A	General and administrative expenses are normally recognized as an asset.
B	The cost of wasted resources of an abnormally high amount are recognized as an asset until the performance obligation has been met.
C	If capitalized costs are no longer expected to be recovered through the contract, a portion of contract revenue should be reversed.
D	Costs that will be reimbursed by the customer are recognized as an asset.