Multiple Choice
Kringle Company has agreed to provide services to North to South Ltd 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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