Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Saar Associates sells two licenses to Kim & Company on September 1, 2021. First, in exchange for $114,000, Saar provides Kim with a copy of

image text in transcribed

Saar Associates sells two licenses to Kim \& Company on September 1, 2021. First, in exchange for $114,000, Saar provides Kim with a copy of its proprietary investment management software, which Saar does not anticipate updating and which Kim can use permanently. Second, in exchange for $102,600, Saar provides Kim with a three-year right to market Kim's financial advisory services under the name of Saar Associates, which Saar advertises on an ongoing basis. The trade name "Saar Associates" is not well known in the marketplace and the owner provides no advertising or other benefits to licensee of the Saar Associates trade name during the license period. How much revenue will Saar recognize in 2021 under this arrangement if Saar reports under IFRS

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools For Business Decision Making Wileyplus Lms Student Package

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

8th Edition

1119390249, 978-1119390244

More Books

Students also viewed these Accounting questions