Question

Tulane Tires wrote a contract for a $104,000 sale of tires to the new Garden District Tour Company. Tulane only anticipates a slightly greater than 50 percent chance that Garden will be able to pay the amounts that Tulane is entitled to receive under the contract. Upon delivery of the tires, assuming no payment has yet been made by Garden, how much revenue should Tulane recognize under U.S. IFRS

Answer 1

Answer: $0

Step-by-step explanation:

Under the United States IFRS, we should note that in this case, the contract according to the question will not be able to qualify for revenue recognition since the percentage of it occuring is more than 50% which mean that it is very likely it'll exist.

Therefore, in this case, revenue recognized will be $0.