Expense Recognition
The following information describes the company’s costs incurred during the year:
|
Amount of |
Expense |
Length of |
Matched |
|
Amount of |
Recognition |
Allocation |
Revenue |
|
Cost |
Method |
Period |
Recognized? |
(a) |
$30,000 |
Direct matching |
Not applicable |
Yes |
(b) |
70,000 |
Immediate recognition |
Not applicable |
Not applicable |
(c) |
15,000 |
Rational allocation |
3 years |
Not applicable |
(d) |
27,000 |
Immediate recognition |
Not applicable |
Not applicable |
(e) |
45,000 |
Rational allocation |
5 years |
Not applicable |
(f) |
50,000 |
Direct matching |
Not applicable |
No |
How much expense should be recognized for the year?