Answer:
- $300
- $100
- $300
Step-by-step explanation:
1. AuctionCo takes control of this used bicycle before the sale and pays $200 to the supplier.
Revenue will be the $300 that the bicycle was sold for because they took control.
2. AuctionCo never took control.
Revenue will be the amount they earned for being agents;
= Sales price - Cash to supplier
= 300 - 200
= $100
3. Assume AuctionCo promises to pay $200 to the supplier regardless of whether the bicycle is sold...
= $300
Revenue is $300 because Auction assumes control when they promise to pay $200 regardless.