Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. this year elizabeth agreed to a three-year service

This year Elizabeth agreed to a three-year service contract with an engineering consulting firm to...

80.2K

Verified Solution

Question

Accounting

This year Elizabeth agreed to a three-year service contract with an engineering consulting firm to improve efficiency in her factory. The contract requires Elizabeth to pay the consulting firm $1,450 for each instance that Elizabeth requests its assistance. The contract also provides that Elizabeth only pays the consultants if their advice increases efficiency as measured 12 months from the date of service. This year Elizabeth requested advice on three occasions and she has not yet made any payments to the consultants. (Leave no answers blank. Enter zero if applicable.)

a. How much should Elizabeth deduct this year under this service contract if she uses the accrual method of accounting?

Deductible amount:

b. How much should Elizabeth deduct this year under this service contract if she uses the cash method of accounting?

Deductible amount:

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Mead Motors purchases an automobile for its new car inventory from Generous Motors, which finances this...

Accounting
Q

OA Grey fox B White footed mouse OC Opossum OD Chipmunk QUESTION 8 The mechanism...

Biology
Q

3 A stone is dropped from the top of a tower of height 45 m...

Physics
Q

Each course at college X is worth either 4 or 5 credits. The members of...

Basic Math
Q

Find the volume of the rectangular pyramid whose base is 3 m x 6 m...

Basic Math
Q

Write an equivalent logarithmic equation Enter in your answer as a whole number or as...

Algebra
Q

Find preliminary net income

Accounting
Q

Smoky Mountain Corporation makes two types of hiking bootsXtreme and the Pathfinder. Data concerning these...

Accounting
Q

On October 1,2024 , Nicklaus Corporation receives permission to replace its $1 par value common...

Accounting
Q

Note 25, Share Repurchase, provides the information we need to reconstruct the journal entry that...

Accounting
Q

2. Juanita invested $100,000 and Jackie invested $95,000 in a new partnership. They agreed to...

Accounting
Q

Suppose you are the money manager of a $4.83 million investment fund. The fund consists...

Finance