The following information is provided for Kelly Plumbing Supply. Cash recelved from customers includes all $139,000 of the accounts feceivable that were outstanding at November 30,201. Accounts receivable at December 31,201, totaled $141,000. Accounts payable (to suppliers of inventory) decreased by $19,000 from November 30,201, to December 31,201. The balance in the inventory account decreased by $39,000 over the same period, Required: What is gross profit for the month of December under accrual accounting? On January 1, 20x1, Quenneville Corporation sold equipment to Wirtz, Inc, for $500,000. The equipment had cost $300,000 to manufacture. The contract with Wirtz requires Quenneville to provide complete maintenance and repair services on the equipment for five years. Quennevilie's cost to provide the services are $10,000 per year, Quenneville sells the five-year maintenance and repait services contracts separately for $90,000. Quenneville uses the residual approach to allocate the $500,000 transaction price between the two performance obligations: delivery of the equipment and the maintenance and repair services. Required: 1. What amount of revenue does Quenneville report in 201 ? 2 . What amount of eamings before taxes does Quenneville report in 201 ? If consideration is received before a contract is identified and the consideration is nonrefundable, tovenue may be recognized if: Multiple Choice there is no remaining obligotion to transfer goods. any of these answer choices is correct. the contract has been serminated. goods have been delvered Panarin Company entered into two contracts on the same date with Hjalmarsson Corporation. Panarin has provided the following onalysis of price and cost for the contracts: Hjaimersson, the customer, may cancel both contracts if either of them is not fulfilled by Panarin in a timely manner. Stand-olone prices are typically $120,000 for the goods in Contract A and $80,000 for the goods in Contract B. Required: 1. Should the two contracts be combined for purposes of applying the five-step revenue fecognition moder? 2. What amount of revenue should Panarin associate with each of the contracts? 3. When should reverue be recognized on each of the contracts? Amiel Company reported sales revenue of $20.3 million and expenses of $11.1 million in 201, excluding the results of its 80%-owned subsidiary, Talia Company, Talia had $7.0 million of sales revenue and $3.0 million of expenses in 201. Ignore income taxes: Required: Prepare Amiel's consolidated income statement for 201. (Enter your answers in millions rounded to 1 decimal place.)