accounting
jkfhkewqdwq1.Sparky Associates sells two licenses to Kim & Company on September 1, 2016. First, in exchange for $100,000, Sparky provides Kim with a copy of its proprietary investment management software, which Sparky does not anticipate updating and which Kim can use permanently. Second, in exchange for $90,000, Sparky provides Kim with a three-year right to market Kim’s financial advisory services under the name of Sparky Associates, which Sparky advertises on an ongoing basis. How much revenue will Sparky recognize in 2016 under this arrangement?
2.The following data relates to a construction job started by Sparky Company during 2016:
Total Contract Price | $100,000 |
Actual costs incurred during 2016 | 20,000 |
Estimated remaining costs | 40,000 |
Billed to customer during 2016 | 30,000 |
Received from customer during 2016 | 10,000 |
Assuming that Sparky recognizes revenue over time according to percentage of completion, how much should Sparky recognize as gross profit for 2016?
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10 years ago
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