Performance Obligation Fulfilled Over Time

ABC Company signed a three-year contract to develop custom sales training materials and provide training to the employees of Liam Company. The contract price is $1,000 per employee and the number of employees to be trained is 500. ABC can send a bill to Liam at the end of every training session. Once developed, the custom training materials will belong to Liam Company, but ABC does not consider them to be a separate performance obligation. The expected number to be trained in each year and the expected development and training costs follow.

	Number of employees	Development and training costs incurred
2019	150	$ 45,000
2020	250	60,000
2021	100	10,000
Total	500	$115,000

For each year, compute the revenue, expense, and gross profit reported assuming revenue is recognized over time using... 1. the number of employees trained as a measure of the value provided to the customer. Note: Round answers to the nearest dollar.

Year	2019	2020	2021	Total
Revenues	Answer	Answer	Answer	Answer
Expenses	Answer	Answer	Answer	Answer
Gross Profit	Answer	Answer	Answer	Answer

2. the cost incurred as a measure of the value provided to the customer. Note: For your Revenue answers, use an unrounded percentage completed factor. and then round your final answer to nearest dollar.

Year	2019	2020	2021	Total
Revenues	Answer	Answer	Answer	Answer
Expenses	Answer	Answer	Answer	Answer
Gross profit	Answer	Answer	Answer	Answer