Business, 19.09.2021 05:20 xmanavongrove55

IBM sold a mainframe computer to its customer for 60 monthly payments of $92,082.61, which totals $5,524,956.60. IBM also agreed to provide installation and training for the customer for no additional charges. According to the agreement the customer is not required to use IBM for installation and training. IBM estimated that the standalone installation and training sales prices are $50,000 and $68,000, respectively. IBM used a 4% annual interest rate in determining the 60 monthly payments. The customer decided to have IBM install and train its employees and IBM delivered the computer on July 1 and completed installation on October 31. Training will take place over the next 12 months. The date of delivery starts the customer's payment obligation to IBM and IBM's year end is December 31. Required:
a. What date may IBM recognize revenue from this transaction?
b. What is the total revenue amount and the related revenue component amounts IBM may recognize on the date specified in answer A?
c. How much interest income (revenue) will IBM recognize in its December 31 regular income statement from this transaction?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 09:30

Oliver's company is planning the launch of their hybrid cars. the company has included "never-before-seen" product benefits in the hybrid cars. which type of advertising should oliver's company use for the new cars?

Answers: 1

Answer

Business, 22.06.2019 14:30

Which of the following is an example of a positive externality? a. promoting generic drugs would benefit people. b. a lower inflation rate would benefit most consumers. c. compulsory flu shots for all students prevents the spread of illness in the general public. d. singapore has adopted a comprehensive savings plan for all workers known as the central provident fund.

Answers: 1

Answer

Business, 22.06.2019 22:00

Exercise 2-12 cost behavior; high-low method [lo2-3, lo2-4] speedy parcel service operates a fleet of delivery trucks in a large metropolitan area. a careful study by the company’s cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. if a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. required: 1.& 2. using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (round the "variable cost per mile" to 3 decimal places.)

Answers: 3

Answer

Business, 23.06.2019 04:40

Which qualifications have an importance level higher than 60 for a career as a customer service representative? select all that apply operation monitoring mathematics service orientation reading comprehension persuasion learning strategies speaking

Answers: 1

Answer

You know the right answer?

IBM sold a mainframe computer to its customer for 60 monthly payments of $92,082.61, which totals $5...

Questions