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Brief Exercise 6-1 (Algo) Revenue recognition at a point in time (L06-2] On July 1, 2021. Apache Company, a real estate devel
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Answer #1
2021 2022
Revenue $2,880,000 0

Explanation: Revenue is to be recognized at the point when the transfer took place. Therefore, full revenue should be recognized in 2021 because transfer of land to construction company is done in 2021. There will be no revenue recognition in year 2022.

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