Maas LLP Developed Software That Helps Farmers to Plow Their

question 239

Multiple Choice

Maas LLP developed software that helps farmers to plow their fields in a manner that prevents erosion and maximizes the effectiveness of irrigation. Sunny Dale paid a licensing fee of $20,000 for a copy of the software. Although Sunny Dale can use the software as long as it wants, Maas expects that Sunny Dale will use the software for approximately 5 years. Maas does not anticipate any further interaction with Sunny Dale following transfer of the license. How much revenue should Maas recognize in the first year of the contract?

• A) $0
• B) $4,000
• C) $5,000
• D) $20,000

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Definitions:

Zenefits

A company that provides cloud-based software as a service to manage human resources, focusing on benefits and payroll.

Leadership Skills

Qualities and abilities essential for leading, motivating, and managing groups or organizations effectively.

Zenefits CEO

The chief executive officer of Zenefits, a company that provides cloud-based software as a service for human resources management, particularly focusing on health insurance coverage for employees.

Parker Conrad

An entrepreneur known for founding the American software as a service (SaaS) companies Zenefits and Rippling.