Question
Saar Associates sells two licenses to Kim & Company on September 1, 2016. First, in exchange for $80,000, Saar provides Kim with a copy of
Saar Associates sells two licenses to Kim & Company on September 1, 2016. First, in exchange for $80,000, 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 $63,000, Saar provides Kim with a three-year right to market Kims financial advisory services under the name of Saar Associates, which Saar advertises on an ongoing basis. |
How much revenue will Saar recognize in 2016 under this arrangement? (Do not round intermediate calculation.)
Please Explain how you came to your numerical conclusion. Thanks in advance |
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