User Account

All Pages

What is the approximate contract consideration allocated

Assignment Help Accounting Basics
Reference no: EM132619393

Question - GerrinAL sells five machines to VernAL for $500,000 per machine, the list price for the machines is $600,000. In a separate contract they sell maintenance services on the five machines for the first year. They charge $12,000 per machine for the maintenance, the list price for maintenance on the machine. As an incentive to sign the maintenance contract, GerrinAL gives VernAL a 25% discount on the purchase of machines in the next 75 days. No discounts are granted to other customers and they project there is 41% probability they will use the discount to purchase one machine with a stand-alone selling price of $600,000. What is the approximate contract consideration allocated to the discount?

a. $120,000

b. $61,500

c. zero

d. $150,000

e. $50,000

Reference no: EM132619393

Questions Cloud

What difficulties did japanese immigrants face in america : Early Japanese Immigration, What difficulties did the Japanese immigrants face in America through the 19th and early 20th centuries?
Create positive learning environment : Explain how good management of relationships in a workplace can create positive learning environment.
Write description of what the each of the variables measure : SPSS is a statistical software program that allows you to enter these variables into a spreadsheet format and record the measurements from a sample.
Investing in the stock market today : If you were investing in the stock market today, how would your decisions be affected based on what you learned in this lesson?
What is the approximate contract consideration allocated : GerrinAL sells five machines to VernAL for $500,000 per machine, What is the approximate contract consideration allocated to the discount
What do accuracy mean in the context of qualitative research : As a qualitative researcher, how would you establish and improve your reliability in each of these areas? What do accuracy mean
Explain what risk management processes can be utilized : The Woolong Company produces high-end vacuum cleaners and sells them to consumers online. They are designing a new product
Developing the scope of web-based project : A local restaurant would like to put its business online, and you are in charge of this project.
How data will be used when benchmarking with organizations : Create a table or checklist of items that the audit will address. Within the narrative section of your report, include information on how and what data will be.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd