Homework Answers
| Land is transferred to Construction Company in 2021. Revenue related to Sale of Land will be recognized in 2021. |
| When Land is transferred to Construction Company, all risks and rewards related to ownership are transferred and revenue must be recognized at that point. |
| 2021 | 2022 | |
| Revenue | 4200000 | 0 |
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On July 1, 2021, Apache Company, a real estate developer, sold a parcel of land to...
On July 1, 2021, Apache Company, a real estate developer, sold a parcel of land to...
On July 1, 2021, Apache Company, a real estate developer, sold a parcel of land to a construction company for $4,370,000. The book value of the land on Apache's books was $1,840,000. Terms of the sale required a down payment of $230,000 and 18 annual payments of $230,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2022 How much revenue will Apache recognize for the sale (ignoring interest), assuming that it recognizes revenue at...
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On July 1, 2021, Apache Company, a real estate developer, sold a parcel of land to a construction company for $4,370,000. The book value of the land on Apache's books was $1,840,000. Terms of the sale required a down payment of $230,000 and 18 annual payments of $230,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2022 How much revenue will Apache recognize for the sale (ignoring interest), assuming that it recognizes revenue at...
On July 1, 2018. Apache Company, a real estate developer, sold a parcel of land to a construction company for $3,000,000. The book value of the land on Apache's books was $1,320,000. Terms of the sale required a down payment of $220.000 and 13 annual payments of $220.000 plus interest at an appropriate interest rate due on each July 1 beginning in 2019 How much revenue wil Apache recognize for the sale ignoring interest), assuming that it recognizes revenue at...
Brief Exercise 6-1 (Algo) Revenue recognition at a point in time (L06-2] On July 1, 2021. Apache Company, a real estate developer, sold a parcel of land to a construction company for $2,880,000. The book value of the land on Apache's books was 51.280,000. Terms of the sale required a down payment of $320,000 and 8 annual payments of $320,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2022 How much revenue will Apache...
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