Question: Required: Answer each case separately for each of the cases answer the following questions, do not combine answers or cases: 1. determine when the seller

Required: Answer each case separately for each of the cases answer the following questions, do not combine answers or cases:

1. determine when the seller should recognize revenue and expense, and where it would be on the income statement

2. Explain your answer using GAAP revenue recognition guidelines.

3. Explain how each transaction would appear on the balance sheet for 2020.

Case 2: Your company is in the business of selling new pickup trucks that average in price from $10,000 to $15,000. The company decides to purchase an antique sports car for $100,000 to sell at a future date at a profit. How would the antique car be treated at the time of purchase and sale versus the pickup trucks? Should it be different and why?

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