On April 15, Topper Company Agrees to a Contract to Sell

question 93

Multiple Choice

On April 15, Topper Company agrees to a contract to sell 9,000 tie-dyed flags for $45,000 to PeaceTime, Inc. On August 1, after 5,000 flags have been delivered, Topper and Peace modify the agreement to sell an additional 6,000 flags for $21,000 which is significantly lower than Topper's stand-alone selling price at that time. During August, Topper delivers 1,000 flags. How much revenue will Topper recognize for the month of August?

• A) $5,000
• B) $4,400
• C) $4,250
• D) $4,100

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Definitions:

Medical Expenses

Costs for healthcare services, treatments, surgeries, and preventive care deductible under certain conditions on personal tax returns.

Periodic Payments

Regularly scheduled payments, often associated with loans, annuities, or settlements, that occur over a period of time.

Divorce Agreement

A divorce agreement is a legally binding document outlining the division of assets, debts, and other obligations between spouses upon the dissolution of their marriage.

Above-the-line Deduction

Deductions from gross income that are made before the calculation of taxable income, directly reducing the gross income amount.