Following are footnotes (excerpted) from the 10-K of Intuit, Inc.

Required

a. Describe the differences in revenue recognition between product sales and after-sale services. How does the company recognize revenue for consignment sales? For products sold on a subscription basis? How is service revenue recognized?

b. Some of the company's sales involve multiple element arrangements. In general, what are these arrangements? How does the company account for such sales?

c. Intuit reports \(\$ 685\) million of research and development expense, up from \(\$ 618\) million in the prior year.
i. What kind of research activities would we expect for a company like Intuit?
ii. Given the kind of research activities described in part i, how does the accounting for Intuit's \(R \& D\) costs differ from the way that those costs would have been accounted for had Intuit used IFRS for financial reporting?

d. Intuit's earnings per share (EPS) is \$2.83 on a diluted basis, compared with its basic EPS of \$2.89. What factor(s) accounts for this dilution?

e. Drawing on Intuit's income tax footnote, prepare a table in percentages showing computation of its effective tax rate for each of the three fiscal years. What tax-related items, if any, would we not expect to continue into fiscal year 2014?

f. Intuit reports total net deferred tax assets of \(\$ 170\) million.
i. Describe how deferred tax assets relating to accruals arise.
ii. Explain how deferred tax assets relating to loss carryforwards arise.
iii. Intuit reports an increase of its deferred tax asset valuation allowance of \$15 million in 2013. How does this affect Intuit's income?

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The following table presents the composition of shares used in the computation of basic and diluted net income per share for the periods indicated. Twelve Months Ended July 31 (In millions, except per share amounts) Denominator: Shares used in basic per share amounts: Weighted average common shares outstanding. Shares used in diluted per share amounts: Weighted average common shares outstanding. Dilutive common equivalent shares from stock options and restricted stock awards..... Dilutive weighted average common shares outstanding... ...... 6 2013 297 297 303 9 2012 296 296 305 2011 10 307 307 317 Revenue Recognition We derive revenue from the sale of packaged software products, software subscriptions, hosted services, technical support plans, financial supplies, implementation services, transaction fees, merchant services hardware, and multiple element arrangements that may include a combination of these items. We recognize revenue when all four revenue recognition criteria have been met: persuasive evidence of an arrangement exists, we have delivered the product or performed the service, the fee is fixed or determinable, and collectibility is probable. Product Revenue We recognize revenue from the sale of our packaged software products, financial supplies such as printed check stock, and merchant services hardware such as retail point-of-sale equipment and credit card readers for mobile phones, when legal title transfers. This