Question: After winning Americas Next Top Model, Danielle Evans signed a contract with Ford Models, was named a spokesmodel for Cover- Girl, and signed a contract

After winning America’s Next Top Model, Danielle Evans signed a contract with Ford Models, was named a spokesmodel for Cover- Girl, and signed a contract for a photo spread in Elle magazine. Although Ford did not disclose the details of the contract, typical terms would provide for payments of $500,000 for each of the next three years. Assume that the present value of these payments is $1.2 million. At the time that Danielle signs the contract, Ford Models also provides her with a BMW M3 convertible sports car, valued at $70,000. How should Ford Models treat this contract at the time of signing?

Step by Step Solution

★★★★★

3.39 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Accounting does not normally recognize mutually unexecu... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

282-B-A-G-F-A (1804).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

The Allendale School District recently signed a contract with its teachers' union. The contract provides that all teachers will receive a one-semester sabbatical leave after seven continuous years of...

The Gansac Publishing Company signed a contract with an author to publish her book. The signing took place on January 1, 2007 and a payment of $20,000 was made. The agreement was that the author...

On September 1, 2019, Conboy Construction signed a contract with Venuti Enterprises to construct a new corporate headquarters and parking garage on land that Venuti owns. Conboy determines that...

Asset and liability recognition and measurement After winning Americas Next Top Mode! in 2006, Danielle Evans signed a contract with Ford Models, was named a spokesmodel for CoverGirl, and signed a...

Eugene D. Fanning Center for Business Communication 0215 (A) Mendoza College of Business University of Notre Dame Martha Stewart Living Omnimedia, Inc. (A) An Accusation of Insider Trading The sun...

chapter 6 \" International Management It was once said that the sun never set on the British Empire. Today, the sun does set on the British Empire, but not on the scores of global empires, including...

1. Compute the year-to-year percentage change in "diluted-income from continuing operations" for each of the five years. 1a. Do the earnings appear volatile? 2. Compute the ratio of long term debt to...

there are lessons to be learned from reading both. Comparing the two stories, from a marketing perspective what was different? What, in your opinion, was the worst mistake made in the first scenario?...

Please discuss the advantages and disadvantages of "JIT" in the automotive industry after reading the two articles included. Article 1: Article 2: AUTOMOBILES Toyota ditches signature 'just-in-time'...

Financial Statement analysis - Homework case number 4. Accounting for Software Revenue Recognition Is Computer Associates Being Too Aggressive? Annual Revenues at Computer Associates (CA) dropped...

Dickinson Company has $12,120,000 million in assets. Currently half of these assets are financed with long-term debt at 10.6 percent and half with common stock having a par value of $8. Ms. Smith,...

What are the opportunities for surveyors in the digital age?

Which of the following would be considered a receivable on the balance sheet? Select answer from the options below A customer ordered 5 0 boxes of chocolates and 2 5 0 candy favors from Gossett...

Using (and, if necessary, extending) the diagram from your solution to Review Question 11, give an example of polymorphism.

One can most easily accomplish the reporting objective of the income statement under the accrual basis of accounting and the reporting objective of the statement of cash flows by issuing a single...

The accrual basis of accounting creates the need for a statement of cash flows Explain.

The statement of cash flows provides information about changes in the structure of a firms assets and sources of financing. Explain.

6 marks) You are a researcher at International Investor Services (IIS). IIS conducts research into corporate governance and sells research reports to the investment community. You are researching one...

1. Si un ajuste incluye un asiento en una cuenta por pagar o por cobrar, de qu tipo de ajuste se trata? a. devengo b. aplazamiento C. estimar d. desecho 2. Qu asiento de diario de ajuste se necesita...

Hui is currently considering investing in municipal bonds that earn 8 . 4 0 percent interest, or in taxable bonds issued by the Coca - Cola Company that pay 1 1 . 2 0 percent. Required: a . If Hui's...