Question

Under ASC 606, a contract modification is accounted for as a separate contract if the additional promised goods are List A> and the price for these additional goods is cList B> List A Not distinctTheir incremental selling Their standalone selling price Distinct Not distinct Cumulative catch-up adjustment to revenue Based on the price of the original contract Distinct


0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer .

1. (c) not distinct standalone selling price because the price of good and services is comparable to their standalone selling price .under the ASC considered the modification contract are qualifies to determine to change the contact to qualifies of a modification contract are not to be distinct to the standalone of selling price.

2.(c) an observable price it is because the standalone price are the entity would sell of separately good and services to the customer .

The best evidence of selling price of standalone the good and services are the observable price of the good or service to be separately.

Add a comment
Know the answer?
Add Answer to:
Under ASC 606, a contract modification is accounted for as a separate contract if the additional...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 1.Which of the following statements is true regarding the new ASC Topic 606 for revenue recognition?...

    1.Which of the following statements is true regarding the new ASC Topic 606 for revenue recognition? Multiple Choice The focus is on when the firm has earned the consideration to which it is entitled. Early adoption is not allowed. The new rules are more rules-based than principle-oriented. Under IFRS, both public and non-public firms must adopt by 2018 2.Assuming the requirements for recognizing revenue over time are met, the measure of completion is computed by dividing Multiple Choice profits earned...

  • Contract Modification Instructions Chart of Accounts |G General Journal Instructions On January 1, 2017, ForeRunner Inc....

    Contract Modification Instructions Chart of Accounts |G General Journal Instructions On January 1, 2017, ForeRunner Inc. enters into a contract with a sporting goods company to provide 100 GPS-enabled watches for $25,000 (S250 per watch) over the next 6 months. On April 1, 2017, when 80 of the watches have been delivered, the contract is modified Required 1. Assume 30, 20, and 30 watches were delivered in January, February, and March, respectively. Prepare Fore- Runner's journal entries to record revenue...

  • Problem 18-2, p. 1042 P18-2 (LO2,3,4) (Allocate Transaction Price, Modification of Contract) Refer to the Tablet...

    Problem 18-2, p. 1042 P18-2 (LO2,3,4) (Allocate Transaction Price, Modification of Contract) Refer to the Tablet Bundle A revenue arrangement in P18-1 (See below). In response to competitive pressure for Internet access for Tablet Bundle A, after 2 years of the 3-year contract, Tablet Tailors offers a modified contract and extension incentive. The extended contract services are similar to those provided in the first 2 years of the contract. Signing the extension and paying $90 (which equals the standalone selling...

  • Problem 3-3 Revenue recognition over time and at a point in time under ASC Topic 606...

    Problem 3-3 Revenue recognition over time and at a point in time under ASC Topic 606 (LO3-4) MSK Construction Company contracted to construct a factory building for $525,000. Construction started during 2019 and was completed in 2020. Information relating to the contract follows: 2020 $150,000 Costs incurred during the year Estimated additional cost to complete Billings during the year Cash collections during the year 2019 $290,000 145,000 260,000 240,000 265,000 285,000 Required: 1. Record the preceding transactions in MSK's books...

  • Exercise 18-29 In September 2017, Ivanhoe Corp. commits to selling 155 of its iPhone-compatible d...

    Exercise 18-29 In September 2017, Ivanhoe Corp. commits to selling 155 of its iPhone-compatible docking stations to Better Buy Co. for $15,965 ($103 per product). The stations are delivered to Better Buy over the next 6 months. After 94 stations are delivered, the contract is modified and Ivanhoe promises to deliver an additional 44 products for an additional $4,312 ($98 per station). All sales are cash on delivery. Prepare the journal entry for Ivanhoe for the sale of the first...

  • Exercise 18-29 In September 2020, Gaertner Corp. commits to selling 150 of its iPhone-compatible docking stations...

    Exercise 18-29 In September 2020, Gaertner Corp. commits to selling 150 of its iPhone-compatible docking stations to Better Buy Co. for $15,000 ($100 per product). The stations are delivered to Better Buy over the next 6 months. After 90 stations are delivered, the contract is modified and Gaertner promises to deliver an additional 45 products for an additional $4,275 ($95 per station). All sales are cash on delivery. Prepare the journal entry for Gaertner for the sale of the first...

  • Contract Modification On January 1, 2017, Spring Fashions Inc. enters into a contract with a southeast retail company to provide 500 dresses for $62,500 ($125 per dress) over the next 10 months. On Oc...

    Contract Modification On January 1, 2017, Spring Fashions Inc. enters into a contract with a southeast retail company to provide 500 dresses for $62,500 ($125 per dress) over the next 10 months. On October 1, 2017, after 450 of the dresses had been delivered (50 dresses per month), the contract is modified. Required: 1. Fifty dresses were delivered each month for the first 9 months of 2017. Prepare Spring Fashions’s monthly journal entry to record revenue. 2. Assume that the...

  • 1.Under a consignment arrangement, revenue is not recognized until the consigned goods are sold to a...

    1.Under a consignment arrangement, revenue is not recognized until the consigned goods are sold to a third party. True or False 2. Amounts received from the sale of gift cards should be recognized by the seller at the time of sale.--True or False 3. Ann Smith just saw her doctor. After the appointment, she was informed by the receptionist that the fee for the visit is $75 and that her insurance company will be billed for the visit. Ann was...

  • Please help me, Mesmerizing Marketers (MM) is a marketing company that offers a variety of marketing...

    Please help me, Mesmerizing Marketers (MM) is a marketing company that offers a variety of marketing offerings to its customers. Specifically: MM a $1M, build $500K, build a$250K. amounts MM to the are not is, independently other a customer purchases all aforementioned items together, the total cost is $1.5M. Payment terms are 50 percent consideration due at contract signing, with the remaining 50 percent due over the rest of the development period (25 percent at mid-point, the app is downloaded...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT