Question
Which of the following items has correctly been included in a manufacturer, Entity As sales revenue for the year? 1. None of the Above. 2.
Which of the following items has correctly been included in a manufacturer, Entity As sales revenue for the year?
1. | None of the Above. | |
2. | $2,000,000 - in relation to a sale to a new customer on 31 Dec 2021. Control passed to the customer on 31 Dec 2021. The $2,000,000 is payable on 31 Dec 2023. Interest rates are 10%. | |
3. | $5,000,000 - relating to a sale of specialised equipment on 31 Dec 2021. The full sales value was $7,000,000 but $2,000,000 relates to servicing that Entity A will provide over the next 2 years, so Entity A has not included that in revenue this year. | |
4. | $3,000,000 - in relation to a fee negotiated for an advertising contract for Entity B, one of Entity As clients. Entity A acted as an agent during the deal and is entitled to a 10% commission. | |
5. | $16,000,000 - relating to a sale of some surplus land owned by Entity A. |
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