Multiple Choice
Kringle Company has agreed to provide services to North to South Plc in exchange for a piece of equipment and a cash payment.The equipment is currently recorded in North to South's books at €73 000 but independent assessors have set the fair value at €65 000.The cash payment of €20 000 will be received 12 months after completion of the services.Kringle should record revenue as:
A) €85 000
B) €65 000 in the current period, €20 000 next period
C) €93 000
D) €65 000 plus the present value of the €20 000 cash component
Correct Answer:
Verified
Correct Answer:
Verified
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