Bob Dodge Taxes

January 10, 2011 dock Dodge 5100 Salmon Creek Vancouver, WA 98686 dearest Mr. Bob Dodge, I enjoyed your daughters wedding this erstwhile(prenominal) spend; those two surely should drive home very t completely, loggerheaded bone children. Hope the newlyweds will recoer soon from the lingua wounds they inflicted on each other when cutting the cake. I have researched the accounting implications of your proposed tack in sanction selects and have fit(p) the interest facts as relevant to the situation: the money from the barter of your emolument contracts is placed in an escrow account and the money is taken come in as needed to satisfy the countenance contracts. Also, to establish plagiarize clients, you have decided to extend some(prenominal) preceding(prenominal) warranty contract for two courses if a former client buys a gondola and a new service contract, or if the previous contract is expired you will swag the customer a one year w arranty for the previous car. Also, if the freshman car is used as a interchange for the minute base car, any time remaining on the first cars warranty contract is added to the second cars contract. Finally, you are contemplating instituting this change retroactively to all of last years repeat customers.

Given the to a higher place mentioned facts, the main issues identified were how to account for the service contracts and how to account for the change from the old service contracts to the proposed new contracts. I have think that you need to gain the tax incomes that come from the service contracts equally over the period of the contracts. This operator you will recog nize equal portions of the revenue for the ! intent of the contract. In the case, however, that we can find historical bear witness that the costs associated with the contract tend to occur at particular(prenominal) times during the life of the contract, you may recognize larger portions of the revenue during these times. As for the costs, you must(prenominal) recognize these costs associated with the obligations of the service contracts as they are...If you lack to purport a full essay, order it on our website: OrderEssay.net

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