Use the Following Information for Questions

question 227

Multiple Choice

Use the following information for questions. A product and service are bundled together and sold to customers for $350.The fair values of the product and service are $300 and $100 respectively.
-On January 1, 2014, Trumpet Ltd.sold land that cost $180,000 for $240,000, receiving a note bearing interest at 10 percent.The note will be paid in three annual instalments of $96,510 starting December 31, 2014.Assuming that collection of the note is very uncertain, how much revenue from this sale should Trumpet recognize in 2014?

• A)$0
• B)$18,000
• C)$24,000
• D)$96,510

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Definitions:

Conventional Morality

A stage in moral development characterized by adherence to rules and standards of one's group or society.

Logical Reasoning

The process of using a rational, systematic series of steps based on sound mathematical procedures and given statements to arrive at a conclusion.

Moral Reasoning

The process through which individuals make decisions about what is right and wrong based on personal, societal, and ethical criteria.

Mathematical Transformations

The process of changing variables or applying operations to alter the form of a mathematical equation or function without changing its essence.