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Problem 1: A contract for the rendering of services is entered into on 1 May 2020. The services are delivered continuously over a 1-year period commencing on 15 May 2020. The buyer pays for all the services on 30 May 2020. How should the revenue be recognised?
Select one:
Option 1: Over the year commencing 30 May 2020 on a straight-line basisOption 2: Over the year commencing 15 May 2020 on a straight-line basisOption 3: 15 May 2020Option 4: 30 May 2020Option 5: None of these
Suppose the company incurs fixed costs of $500,000 during a year in which total production is 200,000 units. What are the total costs for the year?
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During 2012 Gates reported net income of $200,000 and reported dividends of $75,000. Illustrate what is the income reported by Dodge for 2012 with regard to the Gates investment?
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