Kringle Company Has Agreed to Provide Services to North to South

question 43

Multiple Choice

Kringle Company has agreed to provide services to North to South Plc in exchange for a piece of equipment and a cash payment.The equipment is currently recorded in North to South's books at €73 000 but independent assessors have set the fair value at €65 000.The cash payment of €20 000 will be received 12 months after completion of the services.Kringle should record revenue as:

• A)€85 000
• B)€65 000 in the current period, €20 000 next period
• C)€93 000
• D)€65 000 plus the present value of the €20 000 cash component

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Definitions:

American Wage

Refers to the average compensation, including salaries and benefits, received by workers in the United States.

Immigration Effects

The impact of immigration on the economy, labor markets, and society in general.

Equilibrium Wage

The wage rate at which the quantity of labor demanded by employers equals the quantity of labor supplied by workers, leading to a balance without excess supply or demand in the labor market.

Employment Level

A measure of the number of people in a workforce who are currently employed.