Revenue is recognized when:

Using the Aspen investment information above, Redwood’s share of net income is:

Using the Prairie Ridge contract information provided above, the total expected contract gross profit is:

Redwood Manufacturing Inc. acquired 30 percent of the voting shares of Aspen Components Ltd. for $600,000. Redwood has significant influence over Aspen and therefore applies the equity method. During the year, Aspen reported net income of $240,000 and declared dividends of $100,000.

When a contract is expected to result in a loss, the loss is:

Using the Horizon Fabrication information above, the annual depreciation expense for the building is:

Northern Controls Manufacturing Inc. purchased a specialized production system for $980,000. Sixty percent of the cost relates to the physical structure with a twenty-year life and forty percent relates to a computerized control system with an eight-year life. Several years later, the control system was replaced at a cost of $360,000. Accumulated depreciation on the original control system at replacement was $165,000. The remaining structure was tested for impairment when demand declined. Its carrying amount was $535,000, undiscounted future cash flows were $490,000, and fair value was $450,000.

Which subtotal best reflects core operating performance before financing and taxes?

Under the cost method, dividends received reduce the carrying amount of the investment.

Measurement uncertainty most directly affects: