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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