Question - Recognition Daley Motors Co owns a number of car dealerships throughout a geographical area. The terms of the arrangement between the dealerships and the manufacturer are: Legal title passes when the cars are either used by Daley Co for demonstration purposes or sold to a third party. The dealer has the right to return vehicles to the manufacturer without penalty. (Daley Co has rarely exercised this right in the past.) The transfer price is based on the manufacturer's list price at the date of delivery. Daley Co makes a substantial interest-free deposit based on the number of cars held. W Required Should the asset and liability be recognized by Daley Co at the date of delivery?

Question - Recognition Daley Motors Co owns a number of car dealerships throughout a geographical area. The terms of the arrangement between the dealerships and the manufacturer are: - Legal title passes when the cars are either used by Daley Co for demonstration purposes or sold to a third party. - The dealer has the right to return vehicles to the manufacturer without penalty. (Daley Co has rarely exercised this right in the past.) - The transfer price is based on the manufacturer's list price at the date of delivery. - Daley Co makes a substantial interest-free deposit based on the number of cars held. Should the asset and liability be recognized by Daley Co at the date of delivery? Required Question-Recognition Daley Motors Co owns a number of car dealerships throughout a geographical area. The terms of the arrangement between the dealerships and the manufacturer are: - Legal title passes when the cars are either used by Daley Co for demonstration purposes or sold to a third party. - The dealer has the right to return vehicles to the manufacturer without penalty. (Daley Co has rarely exercised this right in the past.) - The transfer price is based on the manufacturer's list price at the date of delivery. - Daley Co makes a substantial interest-free deposit based on the number of cars held. Should the asset and liability be recognized by Daley Co at the date of delivery? Required