Question: 1.A Company can use the expected value to estimate variable consideration when a. the company has only two possible outcomes b. a company has a

1.A Company can use the expected value to estimate variable consideration when

a. the company has only two possible outcomes

b. a company has a small number of contracts with similar characteristics

c. a company can use the most likely amount in a range of possible outcomes.

d. a company has a large number of contracts with similar characteristics.

2.Kraft Company made the following journal entry in late 2018 for rent on property it leases to Danford Corporation. Cash 30,000 Unearned Rent Revenue 30,000 The payment represents rent for the years 2019 and 2020, the period covered by the lease. Kraft Company is a cash basis taxpayer. Kraft has income tax payable of $46,000 at the end of 2018, and its tax rate is 35%. What amount of income tax expense should Kraft Company report at the end of 2018?

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